The RBA is publishing its latest interest rates so you can bet I got my eyes on AUD/USD’s short-term uptrend!
Will today’s themes push AUD/USD to new monthly highs?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
China easing severe COVID protocols in Shenzhen, BeijingOPEC+ maintains oil targets amid uncertainty over Russian sanctions
AU construction contraction improves from 43.3 to 48.2 in November
AU MI inflation gauge accelerates from 0.4% to a four-month high of 1.0% in November
China services activity shrinks from 48.4 to six-month low of 46.7 in November
G7 price cap on Russian oil kicks in, Russia will only sell at market price
UK new car sales up more than 20% in November
ECB’s Lagarde says inflation hasn’t peaked, may surprise to the upside
Gold hits five-month highs on USD weakness
Upcoming Potential Catalysts on the Forex Economic Calendar:
Eurozone’s retail sales at 10:00 am GMT
Canada’s building permits at 1:30 pm GMT
US ISM services PMI at 3:00 pm GMT
US factory orders at 3:00 pm GMT
Japan’s average cash earnings at 11:30 pm GMT
Japan’s household spending at 11:30 pm GMT
UK’s BRC retail sales monitor at 12:01 am GMT (Dec 6)
AU current account at 12:30 am GMT (Dec 6)
RBA’s policy decision at 3:30 am GMT (Dec 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
Traders see ISM’s services report slipping from 54.4 to 53.5 in November. I’m not expecting much impact from the report though, especially after Friday’s non-farm payrolls (NFP) report reflected the labor market strength in the U.S.
Will RBA’s decision cause more ripples on AUD/USD’s short-term uptrend?
If traders still feel like a 25 bps rate hike is something to sell AUD about, then AUD/USD could see intraday losses like it did last month.
AUD/USD could trade below its .6800 support and revisit the .6750 levels closer to the 100 and 200 SMAs on the 1-hour time frame.
But if traders shrug off RBA’s 25bps rate hike, or if USD-selling remains the name of the forex game, then AUD/USD could maintain its uptrend.
AUD/USD could revisit its Monday highs or even make new December highs!