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Australia and the U.K. have some top tier economic events coming our way, which makes the volatile range in GBP/AUD one to watch for the next session or two.

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Fresh Market Headlines & Economic data:

Upcoming Potential Catalysts on the Forex Calendar:

  • ECB Praet Speaks in Luxembourg at 3:10 pm GMT
  • New Zealand Westpac Consumer Sentiment at 8:00 pm GMT
  • RBA Monetary Policy Meeting Minutes at 12:30 am GMT (Mar. 19)
  • Australia House Price Index at 12:30 am GMT (Mar. 19)
  • U.K. claimant count Change at 9:30 am GMT (Mar.19)

What to Watch: GBP/AUD

GBP/AUD 1-Hour Forex Chart
GBP/AUD 1-Hour Forex Chart

In the upcoming catalysts section above, we can see that we’ve got potential market moving catalysts for GBP/AUD in the form of the RBA meeting minutes, Australia housing, and U.K. unemployment data. These reports have a pretty good chance of of sparking a move in GBP/AUD for the next session or two, so let’s look at the chart to see where the bulls and bears could play any rise in volatility.

For the bears, your opportunity may be right now as GBP/AUD retested and failed the top of the March range, which is around 1.8700 – 1.8800. The pair has broken down to start the week’s session, likely on a pop higher in the Aussie from a spike in iron ore prices (one of Australia’s top exports to China) and possibly on sentiment that Asia’s export economy could be bouncing back after Singapore reported a rebound in exports earlier during the Asia trading session.  The upcoming data could give this downmove more steam and with the recent swing lows around 1.8450, the R:R potential looks great if the data can help the bears along.

For the bulls, it might make sense to wait for a retest of the previous swing lows. These are top tier events coming up and with Brexit always in the mix to be a potential catalyst, waiting for a better price should be factored into the entry strategy.  With the daily ATR of around 200 pips, that area could be reached within the next session or two, and if U.K. unemployment is positive while Australia’s housing data is negative, buyers could be eyeing that level for fresh longs.