George Dowd from Newedge on the Reserve Bank of Australia and Bank of Canada announcements.
The Reserve Bank of Australia last night cut rates by 25 basis points to 3.00%. Their statement, which was a bit less dovish than many had expected saw the AUDUSD rally up to 1.0487. The Bank of Canada held rates steady but were noticeably more hawkish than their counterparts at the RBA. They also mentioned that the strong Canadian Dollar could be affecting exports.
The Australian Dollar is technically the more interesting pair here. The market is a bit long of AUDUSD and we are close to some important upside targets, specifically 1.0492-1.0500. Be watch for this cross to exhibit signs of exhaustion in the next few days.
Filmed on the CME Group trading floor and produced by MrTopStep Productions.