AUD major focus with key data over next two days

What Happened Yesterday

As expected the markets went to sleep yesterday after the initial ‘blip’ on the open from North Korea’s bomb tests over the weekend. Traders were content to let the market rest and there’s been no major change to any major currency pairs.

The Aussie dollar now comes into focus with two key releases today and tomorrow. With a lack of any other top tier data the AUD should be the global focus for the next two days.

Today we have the RBA interest rate meeting  with the ‘Statement‘ the major focus as no change in rates is expected. Click here to follow the RBA rate decision & Statement.

Tomorrow we have the Australian GDP data which unlike most other countries is a Quarterly release, so it’s got a lot more bang!

Outside of the AUD the action is going to be driven by remnants of the geopolitical issues that are simmering, in particular North Korea, who are rumoured to be in the process of firing another test ballistic missile. That could have repercussions for the safe-haven trade, although the market is getting a little tired of the ‘boy who cried wolf’ so expect currency movement to be muted unless they start firing the missiles off shore again.

Also Hurricane Irma has been upgraded to a category 4 Storm as it barrels towards the Caribbean. Traders are watching this closely to see where it goes from here…. if it heads into the Gulf or towards the USA then we’ll definitely be hearing more about it and Oil should start getting a little more volatile.

Today’s Fundamental Drivers

The RBA will be the major focus in the Asian session but there’s also reasonable potential in the European session with some key Swiss and Eurozone data scheduled. It’s definitely worth checking it out to see if the EUR responds to any variance in the data.

Technical Set Up – What’s Happening with the Majors

All the major pairs have been trading sideways ‘ready for action’ when we get some new directional information.

Today’s Focus – Major Currencies in Play

You need to follow the economic data releases & best technical set ups to work out where the majority of action and interest will be.

AUDUSD

Technical Set Up: Support 0.7888 & Resistance 0.7988

Fundamental Driver: RBA Rate decision & Statement

Potential Strategy: The RBA Statement is the key to the next leg of direction. If no chnages then the Range trade has to be a good potential opportunity.

Check our detailed AUDUSD Analysis

Next Best Trade Update

We have a few short term and long term pending orders still active. But I can see some really good opportunities building on the crosses.

I’ll be adding those to the ‘waitlist’ as soon as we add it to the NBT list.

Check our Next Best Trades list for full order details.

Summary

We’ve had a pretty chilled start to the week which is a nice change. The majors have been treading water as we await the next round of top tier data OR the NKC to escalate.

We have the first of three central bank decisions today so make sure you fine tune your AUDUSD chart and AUD crosses…..although we don’t expect much from the RBA you should expect the unexpected!

There’s plenty more coming out this week so relax, tune up your charts & get ready to trade…..see you in the 247 Trade Zone!

Brad

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