RBA’s less dovish statement got me looking at AUD/USD.
What do you think of the Aussie’s breakout on the daily?
Before moving on, ICYMI, yesterday’s watchlist checked out EUR/USD’s ascending channel support while forex markets were taking cues from risk sentiment. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
U.S. factory orders drop 0.5% in February (vs. +1.5% in January)
Australia AiG construction index up from 53.4 to 56.5 in MarchBOJ’s Kuroda tones up warning on weak yen, says moves ‘somewhat rapid’
Japan’s households cut spending from January to February (-2.8%) as inflation-adjusted wages stall
RBA no longer ‘patient’, opens door to tightening
Hawkish RBA boosts AUD, sanction worries weigh on euro
UK services PMI firms from 60.5 to 62.6 in March, cost pressures balloon
German regulator takes over Gazprom Germania to ensure energy supply
Eurozone economy got March boost from reopening but prices soared -PMI
Oil extends rally on prospect of fresh Russia sanctions
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. trade balance at 12:30 pm GMT
Canada’s trade balance at 12:30 pm GMT
U.S. ISM services PMI at 2:00 pm GMT
FOMC’s Brainard to participate in a panel discussion at 2:05 pm GMT
China’s Caixin services PMI at 1:45 am GMT (Apr 6)
Germany’s factory orders at 6:00 am GMT (Apr 6)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: AUD/USD
In case you missed it, the Reserve Bank of Australia (RBA) made pips rain for AUD traders today after it removed the “Board is prepared to be patient” bit from its March policy statement.
Instead, RBA is now ready to assess “additional evidence” and other information that points to inflation staying within the central bank’s 2% – 3% target range.The dropping of RBA’s “patient” stance, along with a risk-friendly mood during Asian session trading, helped bust AUD/USD above a tight consolidation on the daily time frame.
Unless we see risk aversion or a spike in dollar demand, AUD/USD may retest the .7700 – .7750 areas of interest.
AUD bulls can take advantage of the current momentum and buy AUD/USD until it encounters significant resistance even on the lower time frames.
Feel like selling AUD instead? Keep your eyes peeled for pro-USD or anti-AUD news that may rain on the bulls’ parade.
China’s lockdowns or the Fed’s meeting minutes, for example, could inspire risk aversion or at least cause short-term retracements for AUD/USD.