The Australian dollar is going to be in focus next week. Retail sales will be released on Monday while the Reserve Bank of Australia will be making a decision on interest rates a day later on Tuesday.
Apart from Apple’s expected launch of the new iPhone, today’s other big event is the Bank of Canada’s rate decision, due at 15:00 BST (10:00 ET). Along with the consensus forecasts, we do not expect the BOC to make any changes to its policy.
Cable continued to consolidate last week in the after shock of Brexit, with the pair trading in a narrow range on the daily chart, and this continued at the start of this week’s trading keeping to a 70 pip range, and closing 9 pips lower off the open.
USDJPY broke out of its double bottom formation on the 1-hour time frame, signaling that a reversal from the previous downtrend is about to take place.
As we come to the end of another trading week, for the Australian dollar it has been another characterized by negative sentiment with the AUD/USD likely to close with a wide spread down candle, with the bearish tone picking up momentum once again. The move lower for the pair is of no great surprise given the clear and unequivocal messages that have been emanating recently from the RBA, during the
A short-term rally might take place for AUDUSD, as the pair formed a double bottom pattern on its 4-hour time frame.
Overnight China’s Central Bank surprised markets with a 25 basis point rate cut for 1 year deposits as well as the 1 year lending rate cut of 40 basis points.
The EURUSD pair fell hard during the session on Thursday as the European Central Bank surprised that the markets with a slight rate cut.
Breaking News India’s interest rate decision
The New Zealand Dollar was the second best performer this week, finishing just 0.12 percent lower against the top performer, the Australian Dollar. The Kiwi crushed the safe haven currencies, the Japanese Yen and the US Dollar, appreciating by 3.72 percent and 2.05 percent, respectively. As Currency Strategist Ilya Spivak frequently notes, the New Zealand Dollar has a very tight correlation to the MSCI World Stock Index, so the commodity currency is at bay to global risk trends.
