The focus has been down under again…
Hi everyone, it has been a while since our last currency watch report. Trading has been really busy the last couple of days with all the geopolitical factors playing a role.
Right this morning during the Asian session we had the release of the quarterly CPI for Australia. The headline CPI came out a bit softer than expected.
The RBA’s main focus in terms of CPI is on the Trimmed Mean CPI reading, which came out as expected. However, the RBA’s target range for CPI is between 2% – 3%.
This means, they are very far from any rate hikes, with the market pricing in a first potential rate hike at the end of 2019.
For this reason the AUD has been pressured during today’s Asian and early morning London session.
Important Scheduled Economic events during today’s session to watch:
Today’s Economic Calendar is pretty much uninspiring with no real market moving data left for the trading day.
Our pair selection for today:
We have chosen the AUDJPY and AUDCAD as pairs we will be watching closely today to look for trading opportunities.
AUDCAD – H4
AUDCAD – M30
AUDJPY – H4
AUDJPY – M30
Further comments on our pair selection:
This trade idea is based on the intraday weakness of the AUD and the recent strength of the JPY and hawkish CAD.
We would be interested in taking sell opportunities at the predefined resistance levels as seen above.
For those of you who are looking for longer term trades, keep an eye on the AUDCAD, given recent central bank biases there is downside potential on this pair in the medium term as well.
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