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Australian dollar slides after CPI stays steadyThe Australian dollar took a hit after Australian inflation was lower than expected. In the North American session, AUD/USD is trading at 0.6493, down 0.78%. Australia’s inflation rate remained steady in January at 3.4% y/y, unchanged from December and below the market estimate of 3.6%. This matched the lowest rate of annual inflation since November 2021. The Reserve Bank of Australia’s preferred core indicator, the trimmed mean, dropped to 3.8%, its lowest level since March 2022. The soft inflation data is an encouraging sign for the Reserve Bank of Australia that its aggressive rate-tightening cycle is keeping inflation in check and the upper level of the 1%-3% target range is not too far off. More importantly, it reduces the likelihood that the RBA will hike rates and raises expectations of two or three rate cuts late in the year. This explains the sharp decline in the Australian dollar today, as lower interest rates would make the Australian dollar less attractive to investors. The RBA has raised rates only once since June 2023 and hasn’t ruled out rate hikes, although the markets believe that this is posturing by the central bank and the tightening cycle is over. Still, the RBA is unlikely to jump on the rate-cut bandwagon until it is convinced that inflation will continue to fall or the strong labour market shows signs of cooling. The next meeting is on March 18th and the RBA is widely expected to maintain rates and continue its “higher for longer” stance. AUD/USD has pushed below support at 0.6584 earlier and is putting pressure on support at 0.6453 0.6526 and 0.6560 are the next resistance lines
by OANDA
GBPAUD | Daily | Trade IdeaAhead of tomorrow’s RBA Interest rate announcement I’ll be looking closely at GBPAUD, as we can see from the current GBPAUD chart from a top-down and a down-up perspective we can take note of the fact that after managing to break out of the downward retracement last month, GBPAUD mamaged to push steadily upward until reaching our 1.94150 area before “losing momentum” forming a consolidation which has lasted for the past few days from the 17th of January till today where it has been steadily trading sideways. With the RBA Interest rate decision underway we can expect GBPAUD to finally choose a direction and breakout of the current consolidation, and from my analysis I can expect the GBPAUD to break in an upward/bullish direction pushing towards our 1.97xxx level hence I’ll be looking to hold my current GBPAUD (BUY) positions for now which haven’t yielded much results thus far. Will be sharing more updates on GBPAUD towards the end of trading tomorrow or early Wednesday morning. Please take note that this analysis is comprised solely of my personal opinions and outlook of the current market and should not be mistaken for financial advice or indication to enter into a particular trade, please confirm with your own analysis first before entering any trades based on the information from the current chart.
Long
by mosa_moshka
⚡️Strifor || NZDUSD-06/02/2024Preferred direction: BUY Comment: The RBA's decision on the interest rate will also most likely have an impact on the New Zealand currency, to a lesser extent, surely, but potentially, since the economies of New Zealand and Australia are closely related and are neighbors. However, we are considering longs for this instrument in the medium term, regardless of the RBA’s decision . Two long scenarios are depicted on the chart. Here, it would be preferable to gain a position by gradually moving the stop-loss beyond the level of 0.60144. The growth target is located at resistance level 0.61263. Thank you for like and share your views!
Long
by Viktor_strifor_analyst
1
⚡️Strifor || AUDUSD-RBA interest rate❗️Preferred direction: BUY Comment: One of the most important events of this trading week is, of course, the RBA's interest rate decision and accompanying statements. At the moment, all previous sales have been closed, and strengthening against the US dollar is expected. Two scenarios are ready for your attention, and the first one is already in progress. We place the second one in the format of a pending order, since no one canceled the volatility at the time of the data release and comments. The main target of such an aggressive trade is located at the level of 0.65848. Thank you for like and share your views!
Long
by Viktor_strifor_analyst
1
AUD/USD eyes RBA rate decisionThe Australian dollar is slightly lower on Monday, after sliding 0.90% on Friday. In the European session, AUD/USD is trading at 0.6499, down 0.21%. Earlier, AUD/USD traded as low as 0.6486, its lowest level since mid-November. The Reserve Bank of Australia is expected to maintain the benchmark rate at 4.35% at Tuesday's meeting, the first of 2024. The RBA raised rates in November but has been reluctant to start trimming rates, even though inflation has been falling and retail sales fell sharply in December. There is still some distance to go in the inflation battle, with inflation running at 3.4% y/y. This is close to the upper band of the RBA's target range of 1-3%, but as the Fed has experienced in its battle to tame inflation, the last mile of the race has proven to be the toughest. What can we expect from the RBA on Tuesday? With inflation still elevated and sticky, we could see the central bank remain cautious and push back against rate cut expectations. Last week's inflation and retail sales reports were weaker than expected, prompting traders to bring forward bets on rate cuts. The markets have priced in a rate cut in May at 50-50 and an 80% probability in June. If Governor Bullock maintains its hawkish stance, the struggling Australian dollar could get a boost. The US nonfarm payroll report sizzled in January with a gain of 353,000, crushing the market estimate of 180,000. The December release was revised upwards to 333,000, up from 216,000. As well, wage growth rose 0.6% m/m, up from 0.4% in December and double the market estimate of 0.3%. This points to a robust labor market. The markets lowered expectations of a March rate cut to 20% after the employment release and that has fallen to 15% on Monday, according to the CME FedWatch tool. The 10-year US Treasury yield climbed above 4% after the employment report. 0.6473 and 0.6433 are providing support There is resistance at 0.6541 and 0.6581
by OANDA
AUD/USD eyes retail salesThe Australian dollar is in positive territory on Monday after an uneventful week. In the European session, AUD/USD is trading at 0.6603, up o.41%. The markets are braced for a soft retail sales report on Tuesday, with December's consensus estimate standing at -1.0%. The November report sparkled with a 2% gain, the strongest level since November 2021. The strong gain was driven by Black Friday sales and other discounts and likely came at the expense of the December reading with consumers doing their Christmas shopping early. There could be a surprise to the upside in the retail sales report if consumers took advantage of Boxing Day sales in late December. The Reserve Bank of Australia meets next on February 6 and has repeatedly said that upcoming rate decisions will be data-dependent. This makes Wednesday's quarterly inflation report a critical release that will have a significant impact on the central bank's rate path. In the US, inflation continues to ease while economic growth remains solid, which is the recipe that the Fed hopes will continue. The US economy expanded by 3.3% in the fourth quarter, blowing past the consensus estimate of 2.0%. On Friday, the Fed's preferred inflation gauge, the PCE Price Index, rose 0.2% m/m in December, compared to 0.1% in November. On an annual basis, the index remained steady at 2.6%. The Core PCE Index eased to 2.9%, down from 3.2% in November.  The Fed is in no rush to raise rates, and market fever over a March cut have fallen dramatically. The markets have slashed the odds of a quarter-point cut in March to 48%, down sharply from 72% a month ago, according to CME's FedWatch tool. AUD/USD is testing resistance at 0.6583. There is weak resistance at 0.6613 There is support at 0.6544 and 0.6514
by OANDA
Good Setup spotted in Burger King India!"Restaurant Brands Asia Limited" earlier known as "Burger King India" is currently showing a good setup and an upside potential of 45% from CMP. The stock had rallied nearly 60% between March-Sep 2023. This very rise was impulsive in nature and therefore labeled as wave 1 on the chart. Between Sep-Dec the stock went through a triple three correction(WXYXZ) and retraced nearly 50% of the impulse. This retracement was in fact was the wave 2. The stock currently is in Wave 3 structure and could rally towards INR 190 mark. On the downside the swing low of 118.1 becomes a crucial structural support for the stock and could be used as a "SL".
NSE:RBALong
by neeraj_2_sharma
AUD/USD slips ahead of RBA decisionThe Australian dollar has started the week in negative territory. In the European session, AUD/USD is trading at 0.6648, down 0.40%. The Australian dollar is coming off a strong week, with gains of 1.38%. The Reserve Bank of Australia is expected to hold rates at 4.35% at its Tuesday rate meeting. The central bank has paused for four straight months and the markets don't expect any further hikes. Still, the RBA could send a hawkish message along with the pause to dampen speculation about a rate hike in 2024, with inflation still high at 4.9%, which is well above the 2% target. Federal Reserve chair Jerome Powell spoke on Friday, and his split message sent the US dollar sharply lower against most of the majors, including the Australian dollar which jumped 1.06%. Powell noted that monetary policy is "well into restrictive territory" and that inflation is "moving in the right direction". The markets interpreted these remarks as signals that the Fed is done with rate tightening. Although Powell warned that it was premature to assume that the Fed had achieved a "sufficiently restrictive stance", investors viewed the remarks as dovish and the US dollar fell sharply. The futures markets have priced in a rate cut in March at 59% and in May at 87%, according to the CME FedWatch tool. The Fed clearly doesn't share this stance, as most Fed members who spoke last week supported the case for holding rates at current levels for some time. This disconnect between the Fed and the markets is likely to continue as the Fed is unlikely to discuss rate cuts while inflation remains above the 2% target. The markets are looking at a rate cut in late 2024, but a lot could happen until then. If the economy cools more quickly than expected, the RBA would have to give thought to cutting rates in order to boost growth. AUD/USD tested support at 0.6639 earlier. Below, there is support at 0.6603 0.6712 and 0.6748 are the next resistance lines
by OANDA
AUDUSD: Bullish consolidation in short term?The minutes from the Reserve Bank of Australia's (RBA) Nov. 7 meeting due out on Tuesday at 0030 GMT present a risk to the recent gains in the Australian dollar. At the meeting the bank hiked the cash rate by 25bps to 4.35%, matching expectations. However, the RBA delivered a less hawkish forward guidance, stating that further tightening of monetary policy may be required. This raises the bar for the RBA to deliver an additional rate hike, which given that markets are pricing in over a 40% probability of a hike by March 2024, leaves AUD at risk from a dovish repricing. The statement of monetary policy (SOMP) also acknowledged that policymakers considered whether to pause and thus emphasises that the bar to hike again is elevated. That said, although this is a risk to the Aussie, the current backdrop of a softer dollar remains the dominating theme across FX, which in part can limit downside in the Australian dollar. From a technical point of view, the pair could extend gains as shown on 1H chart. Trade with care Like | Share | Comment
Long
by TheAnonymousBanker
7
AUD/USD BULLISH OUTLOOKThe USD, having experienced substantial blows from rate cut projections, faces a challenging scenario with the Fed signaling probable easing. Despite the narrative of falling inflation, policymakers are aiming to relay the message that inflation has yet to stabilize sustainably near the targeted 2%. The looming Fed speeches, particularly Chair Powell's impending remarks, serve as preludes to the blackout period before the December policy meeting, crucial in shaping market expectations. As the USD grapples with uncertainties, major currency pairs are capitalizing on its weakness. The AUD, alongside currencies like the GBP and NZD, has displayed resilience, buoyed by a hawkish tone from the Reserve Bank of Australia (RBA). However, doubts persist about China's economic revival, making forthcoming Australian CPI readings pivotal for short-term AUD prospects. The AUD/USD technical indicators signal a bullish trajectory, with both MACD and RSI showing buy signals. The current trend could potentially elevate the price to levels around 0.6795, although a pivot point at 0.6648 might redirect the price to around 0.6598. With the USD on a downtrend, and pivotal economic events looming, the AUD's performance against the greenback hinges heavily on data releases, central bank policies, and global economic sentiments in the days ahead. Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
Long
by legacyFXofficial
Australian dollar extends gains, retail sales nextThe Australian dollar has extended its gains at the start of the week. In the European session, AUD/USD is trading at 0.6603, up 0.28%. The Aussie has posted an impressive streak, rising 3.8% against the greenback since November 14th. Australia releases retail sales for October on Tuesday. The consensus estimate stands at a negligible 0.1%, compared to a strong 0.9% gain in September. The sharp gain, which indicated resilience in consumer spending, provided support for the RBA to raise rates at the November meeting. If retail sales misses the estimate, it could sour sentiment towards the Aussie and send the currency lower. RBA Governor Michele Bullock will speak at an event in Hong Kong on Tuesday and investors will be looking for hints about what the RBA is planning at its meeting on December 5th. Changes, big changes are coming to the Reserve Bank of Australia. The Australian government announced it would introduce legislation to overhaul the central bank. This follows an independent review which called for sweeping changes at the RBA. There has been much criticism of the RBA for its pledge not to raise rates before 2024, only to embark on a tightening campaign which has raised the cash rate to 4.35%. The new Governor, Michele Bullock, has said she is favour of the changes. Last week, Bullock said on Tuesday that inflation has peaked and that the upside risk to inflation was domestic and demand-driven. Bullock noted that inflation had dropped from 8.0% to 5.5% in less than a year, but it would take much longer for inflation to drop that amount again and fall to 3%. The RBA's target range is 2%-3%. The RBA remains hawkish and raised rates earlier this month after holding rates for four straight times. AUD/USD is putting pressure on resistance at 0.6618. Above, there is resistance at 0.6650 0.6559 and 0.6526 are providing support
by OANDA
AUD/USD soars on US inflation, Aussie employment nextThe Australian dollar is unchanged on Wednesday, after massive gains a day earlier. In the European session, AUD/USD is trading at 0.6505. Australian wage growth climbed 1.3% q/q in the third quarter, matching the consensus estimate and above an upwardly revised 0.9% gain in Q2. This was the highest gain since records started in 1997, but the spike was largely due to an increase in minimum wage and a pay rise for elderly care workers. The unusual confluence of factors behind the strong wage growth print meant that it had little effect on market pricing of a rate hike. The markets have priced in a pause above 90% at the Reserve Bank of Australia's next meeting on December 5th. The RBA raised rates earlier this month after four straight pauses but the hike was considered dovish by the markets and the Australian dollar took a tumble following the decision. Australia releases employment data on Thursday, with the labour market continuing to show resilience. The economy is expected to have added 20,000 jobs in October, compared to 6,700 in September. The RBA will be keeping a close eye on consumer inflation expectations, which is expected to fall in October from 4.8% to 4.1%. The US inflation report was only a bit lower than expected, but the US dollar was pummelled on Tuesday with sharp losses against the major currencies. The Australian dollar soared, gaining 2% against the greenback. Monthly, headline inflation was unchanged in October for the first time in 15 months, with lower gasoline prices helping to push inflation lower. On an annual basis, headline inflation fell from 3.7% to 3.2%, below the market consensus of 3.3%. Core inflation inched lower to 4.0%, down from the September reading of 4.1% which was also the market consensus. AUD/USD is putting pressure on resistance at 0.6526. Above, there is resistance at 0.6592 0.6476 and 0.6408 are providing support
by OANDA
AUDJPY: Interesting zone, continue up or Double top reversal?We're at the top end of the range for this pair, I am expecting BoJ to start backing its currency. I've recently noticed some negative correlation between USDJPY and the other XXXJPY crosses, so where USDJPY falls the others have been more bullish. That said if the BoJ get involved it will tank all of them. I'm not 100% what I really think will happen here, I think the Friday pinbar suggests there's more upward momentum, but will be very cautious if I trade as anything against the Yen (@which is staggeringly weak against everything). I'm opting for a move up and would keep a tight and chasing SL in place.
Long
by Finchcliffe
1
AUDNZD: Awaiting the RBA's decisionThe Australian dollar might give back most of its recent gains against the U.S. if the Reserve Bank of Australia opts not to raise rates next week, given the groundswell of opinion backing a hike. Thirty-five out of 39 economists polled by Reuters expect the RBA to increase rates on Nov. 7, with only four predicting a hold. All of the “Big Four” Australian banks are in the majority forecasting a hike, including Westpac where newly-installed chief economist Luci Ellis was until recently assistant governor at the RBA. AUD/USD scaled a five-week peak of 0.6456 on Thursday, as the risk-sensitive AUD benefitted from global equity gains, hours after AUD/NZD notched a 19-week high of 1.0948. If the RBA springs a dovish surprise and keeps rates unchanged on Tuesday, AUD/NZD pair could sag towards 1.0820 area. Australia’s central bank most recently raised rates in May (when 75% of economists polled by Reuters expected a hold). With these in mind, we will follow a simple bearish setup and try to take a short position on a potential technical bounce with a stop loss above the previous top. Trade with care Like | Share | Comment
Short
by TheAnonymousBanker
5
Head & Shoulders on AUDUSDThe AUDUSD fell from the 0.6480 level following the RBA's decision to hike rates by 25bps on Tuesday. The retracement failed to break above the 38.2% Fibonacci retracement level, forming a head and shoulders pattern on the AUDUSD. Anticipating recovery in strength on the DXY, look for the AUDUSD to break below the neckline at 0.6415 to signal further downside, with the next previous swing low at 0.6325 a possible target level. A more conservative sell signal would be to wait for the price to break below the 50% Fibonacci retracement level at 0.6395
by JinDao_Tai
NZD/USD slides on RBA decision, mixed Chinese dataThe New Zealand dollar is down sharply on Tuesday. In the North American session, NZD/USD is trading at 0.5927, down 0.61%. It has been a roller-coaster ride for the New Zealand currency, which continues to swing wildly. Last week, NZD/USD surged 3.24%, its best weekly performance since October 2022. This week has been all red for the New Zealand dollar, which has fallen 1.19%. Today's Reserve Bank of Australia decision sent the Australian dollar reeling and also dragged down the New Zealand dollar, as there is a strong correlation between the two trans-Tasman currencies. The Australian dollar is down 1.16% against its US counterpart, despite the RBA raising rates by a quarter point to 4.35%. The language in the RBA statement was somewhat dovish, stating that the rate hike was meant to ensure that "inflation would return to target in a reasonable timeframe.” This signalled an easing of the RBA's tightening basis and raised expectations that the RBA may have completed its tightening cycle or is very close to that stage. The RBA statement included the usual rhetoric that future rate decisions would be data-dependent and rate hikes were still on the table, but the markets jumped on the dovish language and ignored the rate increase, which follows four straight pauses. The strong market reaction suggests that the investors believe that the RBA is unlikely to raise rates even though inflation remains well above the 2%-3% target range and inflation expectations have been stubbornly high. The New Zealand dollar also lost ground due to mixed Chinese data. Imports rebounded in October with a gain of 3.0% y/y following a 6.2% decline in September and beating the market consensus of -4.8%. However, exports fell 6.4% after a 6.2% decline in September and missed the market consensus of -3.3%. This marked a sixth successive decline, indicative of continuing weak global demand for Chinese goods. New Zealand releases Inflation Expectations for the fourth quarter on Wednesday. The market consensus stands at 2.60%, after a 2.79% gain in Q3. An unexpected reading could have a sharp impact on the movement of the New Zealand dollar. NZD/USD is testing support at 0.5929. The next support line is 0.5858 There is resistance at 0.5996 and 0.6069
by OANDA
High Stakes: RBA rate decision vs. Melbourne Cup We are about 8 hours away from the latest Reserve Bank of Australia interest rate decision. That decision is due on Tuesday at 2:30 pm (local Aussie time), a couple of hours before the country's biggest horse race, the Melbourne Cup ($8 million in prize money) is set to take place. But perhaps the more exciting match ups will be occurring in the forex market. Currently, the market is thinking there is a 70% chance of a 25-basis points hike because of the RBA governor's rhetoric that the bank would "not hesitate to raise the cash rate further" if inflation was higher than expected (which it was in its last quarterly reading). The 30% chance of no hike is possibly driven by concerns about mortgage stress in the country after the post-COVID 12 cash rate increases. On the flip side of some potential AUD trades, we have expectations for the US Fed and the European Central Bank (ECB) enacting a 25-basis points cut by June next year. Weaker-than-expected NFP figures in the U.S. last Friday bolstered expectations that the Fed was done with its tightening campaign and pulled the AUD/USD up past 0.64900 from 0.64400. This makes me question whether the upside to the AUD/USD is all played out. Moments after the interest rate announcement will be crucial to see which direction the market wants to take. If the RBA does enact a hike today, concerns about mortgage stress in Australia might induce the pair to revisit some of the levels the pair traversed last Friday during its climb just before market close.
by BlackBull_Markets
Aussie soars to 3-month high, RBA expected to hikeThe Australian dollar has edged lower on Monday, after huge gains on Friday. In the North American session, AUD/USD is trading at 0.6499, down 0.21%. On Friday, the Aussie posted spectacular gains, rising 1.22% and hitting its highest level since August 10th. The US dollar retreated against the majors on Friday, suffering sharp losses after a softer-than-expected nonfarm payrolls report. Nonfarm payrolls fell to 150,000 in October, down from a downwardly revised 297,000 in September and shy of the consensus estimate of 170,000. The reading wasn't a massive miss of the forecast, but investors jumped all over the soft reading as expectations jumped that the Fed could be done with tightening. The Fed rate odds of a hike in December have fallen to 10%, compared to 24% just a week ago, according to the CME Fed Watch Tool. We can expect to hear the markets talk more and more about a rate cut sometime in 2024. The RBA meets on Tuesday and we've seen a remarkable swing in the RBA rate odds. Just a few weeks ago, the probability of a pause was close to 100%, but that has changed dramatically. According to the ASX RBA rate tracker, the odds of a hike are now 50/50, making it a live meeting that could see significant volatility from the Australian dollar. RBA policy makers have a tough call to make after holding rates four straight times. Inflation has been falling slowly but the current level of 5.4% is much higher than the 2% target. Inflation expectations remain high and the RBA wants to see these expectations remain anchored; otherwise, the battle with inflation will become even more difficult.
by OANDA
AUDUSD: Thoughts and Analysis pre-RBA Today's focus: AUDUSD Pattern – Range /Distribution? Support – .6287 Resistance – .6520 Hi, and thanks for checking out today's update. Today, we are looking at the AUDUSD on the daily chart. Today, we have run over the AUDUSD as price continues to test resistance after Friday's fantastic rally after US employment data sunk the USD. Technically price looks good. We have run over price action we want to see to show a continuation in the AUDUSD. Two factors are the USD strength and the RBA rate decision. Rates are expected to rise tomorrow, but will this be it, or will the door be left open? The USD momentum change is another key. If this trend continues, we will look for the AUDUSD to contnue its current trend. We do want to see a new higher low to show a solid trend structure. Good trading.
Long
by Eightcap
AUDCHF: Fakeout or Breakout?We can see we've just broken out of my channel top after a strong bullish move, but this isn't the first time and we're hitting strong resistance. Swissie has been weak of late, unlike the Aussie, so I believe this can go either way. I'll be looking at longs around 0.589 if resistance is broken, but we may well fall back first. If we fall back below 0.578 then I'll be waiting for the triple bottom around 0.561 before looking to go long. Obviously this could all be a fakeout and we'll be back in the channel, but I do think it's risky shorting down hear unless it's for a quick scalp as it definitely looks like a good double bottom is already in play. Both of these currencies are gold dependent for different reasons (Aussie exporting it, Swissie holding it), and Aussie is doing well because gold is. I'm expecting a c0ontinuation of gold strength as per my recent idea, so probably expecting this pair could keep flying?
Long
by Finchcliffe
AUDCHF Super Long signal with possible 2000pips The upcoming week appears to be relatively light on economic data, with the highlight being the RBA (Reserve Bank of Australia) rate hike. Anticipations are for another 25 basis points rate hike by the RBA, reflecting ongoing efforts to manage economic conditions. Additionally, it seems that geopolitical tensions in the Israel War are not expected to escalate further, which could impact currency markets. In this scenario, traders may find opportunities in capitalizing on the strength of the Australian dollar (AUD) and the weakness of the Swiss franc (CHF).
Long
by Tradingstrategyguides
1