Another strong move with the CNH and higher Copper price help the Australian dollar to resume short rally above 0.7439. RBA decided to leave the cash rate unchanged at 1.50%, as expected.

Highlights:
• Over the past year, the CPI increased by 2.1 percent, and in underlying terms, inflation was close to 2 percent. The central forecast is for inflation to be higher in 2019 and 2020 than it is currently
• GDP growth is expected to average a bit above 3% in 2018 and 2019
• A further gradual decline in the unemployment rate is expected over the next couple of years to around 5%
• Further progress in reducing unemployment and having inflation return to target is expected


What’s on today?

  • Speech by Philip Lowe, Governor at 1.05 pm AEST
  • China Trade Balance

A sharp rise in Chinese stocks, rally with CNH and Copper prices are the key triggers that help AUD to trigger the short-term rally.

AUDUSD: AUDUSD has been trading in the recent range 0.7485- 0.7310 for five weeks. Once again it will be quiet regarding market-moving data releases, and that will leave investors’ primary focus to the China action (CNH and Copper). Looking ahead, potential resistance remains at 50MA at 0.7440, a recovery back above the 50MA needed to gain more headroom to 0.7460 and 0.7480. Watch out instead for a short pull back to 0.7400 and 0.7370. Additional fractal support finds at 0.7350.
Weekly range: 0.7520-0.7350
View: Sideways

AUDNZD: AUDNZD manage to keep past few days gains and run through the first resistance with is the first target price.

Read:

Weekly range: 1.1070-1.0950.

View: Bullish

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