- AUD pushed higher overnight after the RBA meeting.
- The Australian Dollar has been feeling the effect of positive trade comments.
AUD/JPY has pushed higher overnight and in the EU session as the RBA kept rates on hold as expected and commodies currencies outperform.
The more important aspect of the rate decision was the fact that futures markets have cut their predictions of a rate cut in December.
Some analysts had been pricing in a 90% chance of a cut in December but those have now been revised to around 50% following yesterday's comments.
JPY has also been struggling after a strong bout of positive risk sentiment over the last few weeks due to a more positive stance from China and the US.
On the daily chart below, we are headed to a couple of key levels. One is the trendline and if this breaks it would be a very bullish signal for risk. The next is a resistance level at 75.94 which is very close to the aforementioned trendline.
On the commodities front, copper and base metals are trading well and due to the correlation between AUD and base metals, it is pulling AUD higher. This move once again is driven by the positive trade war stance which makes headlines all the more important.
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