Free Trial

The RBA MonPol decision supported AUD/USD,...>

AUSSIE
AUSSIE: The RBA MonPol decision supported AUD/USD, last at $0.7262, 35 pips
higher on the day. 
- The RBA failed to allude to a more neutral view on MonPol as it left its cash
rate unchanged, which propelled AUD to the top of the G10 FX leaderboard, as the
doves were left disappointed. This occurred even as the Bank trimmed its GDP
forecast to 3.0% for 2019 (prev. 3.25%), with the potential for a lower 2020 GDP
growth forecast in the SoMP due Friday. 
- The Bank's decision came after AUD underperformed in early Asia-Pac trade,
pressured by a soft AU retail sales print & weak trade balance breakdown. 
- AUD/USD briefly looked below $0.7200 today before bouncing & jumping above
yesterday's high of $0.7254. Initial topside focus now falls on the upper 1.0%
10-DMA envelope at $0.7271, ahead of the Jan 31 YTD high of $0.7295. Conversely,
bears look for a break below the 100-HMA at $0.7242, which would allow them to
target the cloud top at $0.7206. 
- RBA Gov Lowe is set to speak tomorrow, while RBA's SoMP comes out Friday.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.