|Day's Range||0.679 - 0.68|
|52 Week Range||0.6679 - 0.7393|
The Aussie dollar fell a bit during the trading session, dipping below the 0.68 handle, an area that has previously been resistance, and now is being tested to see if it will in fact told.
After taking a “wait and see” tone in August and September, RBA policymaker makers have “waited and seen” the results, which could mean another rate cut as soon as its policy meeting on October 1.
The Chinese yuan and NZ dollar are quiet on Thursday, but the Aussie continues to lose ground after the unemployment rate rose higher. As expected, the Fed lower interest rates but sought to reassure the markets that the U.S. economy is in good shape
Investing.com - The yen rose from a seven week low against the U.S. dollar on Thursday after the Bank of Japan kept monetary policy on hold, in the wake of the Federal Reserve’s overnight decision to cut rates.
It’s a big day for the Pound, with retail sales figures due out ahead of the BoE monetary policy decision. Will there be any dissenters to sink the Pound?
The Australian dollar has fallen again during early trading on Wednesday as we await the Federal Reserve decision and following statement. That being the case, it looks like we are finally starting to see sellers come back into this market.
Based on the early price action and the current price at .6839, the direction of the AUD/USD on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at .6652. Look for a two-sided reaction with the release of the Fed announcements at 18:00 GMT.
With economic data on the lighter side, the market focus will be on Brexit chatter and the FOMC. For the Loonie, inflation figures will also influence.
The Australian dollar finally rolled over a bit during the trading session on Tuesday, after forming several shooting stars over the last week or so. Because of this, it looks as if the Aussie could be facing renewed pressure.
The minutes show that the RBA was ready to consider further policy easing as needed to support growth and inflation targets, while it was reasonable to expect an extended period of low interest rates.
Uncertainty over how the U.S will respond to the attacks on Saudi oil feeds could leave the markets tentative ahead of tomorrow’s FOMC decision.
In my opinion, the RBA came across as a touch more optimistic when it left interest rates on hold earlier in the month. Although I expect at least one more rate cut before the end of the year, the minutes may emphasize patience, while mentioning the need for more fiscal help for the economy from the government.
Attacks on Saudi oil fields drove demand for the Yen and the Loonie as oil prices surged. Johnson is in focus later today and the GBP needs progress.
Based on the early price action and the current price at .6872, the direction of the AUD/USD the rest of the session on Monday is likely to be determined by trader reaction to the uptrending Gann angle at .6868 and the 50% level at .6880. In between these two levels is the downtrending Gann angle at .6877.
The AUD/USD and NZD/USD could break sharply after the Fed announcements if central bankers come across as hawkish, leading to the reduction in the chances of another Fed rate cut before the end of the year.
It’s a big week ahead for the markets. The FED, the BoE and Brexit are in focus, with stats and chatter on trade also needing some attention.
During the previous week, we had a very strong candle stick for the weekly close, and then continue the upward momentum during the week over the last five sessions but have stalled a bit. This makes sense, because we aren’t quite sure what to make of the US/China trade situation yet.
Based on the early price action and the current price at .6869, the direction of the AUD/USD on Friday is likely to be determined by trader reaction to the main 50% level at .6880 and the downtrending Gann angle at .6882.
It’s risk-on through the Asian session as the markets respond to the ECB move. On the day ahead, the focus will be on Brexit and U.S retail sales figures.
So far this week, commodity currencies are shining as safe haven currencies are retreating on newfound optimism over US-China trade, Brexit, Hong Kong and central bank easing. But could this be sustained next week? The big focus will be on Thursday’s ECB meeting, which comes with updated staff projections and is widely expected to see the ECB introduce further easing measures.
Keep in mind that the Australian and New Zealand Dollars are being driven higher by short-covering and some aggressive counter-trend speculative buying. We could see further short-term upside action in the AUD/USD and NZD/USD until global risk aversion returns.