- RBA minutes: Moderate expansion of economy continued
- RBA minutes: Labor market conditions strengthened
- RBA no longer keeping monetary policy “accommodative”?
Apart from the RBA minutes, there were no other top-tier releases in today’s Asian session, allowing forex traders to zoom in on what’s next for the Aussie. The transcript of the RBA policymakers’ latest huddle had a not-so-dovish tone, as central bankers no longer emphasized the need to keep monetary policy accommodative.
In addition, RBA officials highlighted the continued expansion in the domestic economy and the pickup in labor market conditions. Although they also noted the downbeat data from China and the emerging markets could still pose risks, policymakers pointed out that the resulting slump in commodity prices and the resources sector could just be temporary.
AUD/USD is up 25 pips to .7271 (+0.31%), AUD/JPY is up 24 pips to 86.83 (+0.27%), and AUD/CAD is up 42 pips to .9480 (+0.44%) thanks to the Loonie’s post-election tumble.
The Kiwi also seems to be in a good mood lately, as forex junkies are anticipating another positive result from the upcoming dairy auction. NZD/USD is up 15 pips to the .6800 handle (+0.19%), NZD/JPY is up 12 pips to 81.20 (+0.14%), but the New Zealand currency still gave up ground to the Aussie as AUD/NZD is up 22 pips to 1.0690 (+0.21%).
Before this highly-anticipated GDT auction, though, European currencies might still be able to steal the show with a few medium-tier acts lined up. Switzerland is set to print its trade balance at 7:00 am GMT and might show a smaller surplus of 2.51 billion CHF compared to the previous 2.86 billion CHF reading. BOE Governor Carney and MPC member McCafferty, who are both somewhat hawkish, are set to give speeches starting 10:45 am GMT so watch out for additional volatility among pound forex pairs then.
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
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