2023-08-16 • Updated
The Reserve Bank of Australia (RBA) has opted to keep interest rates steady at 4.1% for the second consecutive month, signaling a new phase in its approach to tackling inflation. The RBA's governor, Philip Lowe, referred to this stage as the "calibration phase," where the central bank makes subtle adjustments to its policy. Despite rising unemployment to 4.2% and an annual inflation rate of 6%, the RBA believes its past rate hikes will continue to curb inflation. The RBA's strategy involves gradually allowing previous interest rate changes to impact the economy. While further rate hikes are possible, they would likely be delayed until later in the year.
After a record swoop in the price action, the AUDUSD might be prepping for a rebound. The current price action on AUDUSD suggests that the marked demand zone on the attached chart would be the major turning point in the price action as we await the fundamental confluence in line with this sentiment. In the meantime, the confirmations for this trade include;
Analyst’s Expectations:
Direction: Bullish
Target: 0.66323
Invalidation: 0.63872
GBPAUD is trading within the weekly supply zone, having recently broken above the trendline resistance. I believe the break above the trendline is simply an induced move to trap sellers and shake off several of them before the bearish move actually begins. On this basis, I will be waiting to see a clear entry condition on the lower timeframe due to a change in the market structure before I take an entry.
Analyst’s Expectations:
Direction: Bearish
Target: 1.93961
Invalidation: 1.98973
AUDCAD has a few confluences that clearly state the market intent as bullish. First, the price currently trading within the demand zone from the previous low. This movement is also supported by the trendline support and 88% of the Fibonacci retracement tool. In this regard, a structural confirmation on the lower timeframe would trigger to go long.
Analyst’s Expectations:
Direction: Bullish
Target: 0.89023
Invalidation: 0.85948
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more of such trade ideas and prompt market updates on the telegram channel.
During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...
Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
|
