|Day's range||0.677 - 0.677|
|52-week range||0.6679 - 0.7393|
After surprising traders with a 50 basis point rate cut in August, many traders thought the RBNZ would pass on a September 24 rate cut and trim on November 12 instead. However, this week’s price action indicates that traders aren’t taking any chances with another surprise and have already begun to price in a rate cut for next week.
The Australian dollar initially tried to rally during the week, but then broke down significantly as we continue to see a lot of concerns when it comes to the US/China trade situation and of course global growth in general which Australia is highly sensitive to.
The Australian dollar initially tried to rally during the trading session on Friday, but then struggled above the 0.68 level. By doing so, the market turned right back around to form a very bearish looking candle stick.
Based on the early price action and the current price at .6804, the direction of the AUD/USD the rest of the session on Friday is likely to be determined by trader reaction to the short-term 50% level at .6791.
It’s been a sleepy start to the Friday session, with little movement from the Australian, NZ or Chinese currencies. With no fundamentals on Friday for the markets to chew on, I expect a quiet trading day as we wrap up the week.
Another flat day for US equities as the S&P; 500 Index closed little changed, as investors searched but failed to find a decent incentive to buy suggesting investors remain mildly disappointed by the latest round of central bank policy.
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.
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.