RBA Surprises, but Choppy Conditions Persisting in USD-Majors
- AUDUSD bucked by RBA cutting rates to record lows.
- EURUSD and GBPUSD stuck in 'no man's land' in consolidations.
- See the DailyFX Economic Calendar for Tuesday, February 3, 2015.
15 central banks have embarked on dovish action this year - not a good sign for the global economy. The Reserve Bank of Australia's surprise decision (only 7 of the 29 economists polled by Bloomberg News forecast the 25-bps rate cut) has certainly jolted the commodity currencies, but there has been little spillover elsewhere. It seems that, in the very short-term, markets are looking past signs of the global deflationary shift and instead are tuned into headlines regarding the Greek debt negotiations. Along these lines, many of the major USD-major pairs are stuck in consolidative formations.
See the above video for technical considerations in EURUSD, GBPUSD, and AUDUSD.
--- Written by Christopher Vecchio, Currency Strategist
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