AUD Soars on CPI, Gold Eyes Fed Meeting - US Market Open
AUD: The Aussie is soaring this morning following better than expected CPI data. Despite activity data weakening as of late, the RBA will be encouraged by today’s inflation report (1.8% vs. Exp. 1.7% Y/Y). Consequently, this may prevent the central bank from altering its current rate guidance (Next move in rates likely to be higher). Alongside this, rising iron ore prices following the Vale’s dam burst continues to offer support. AUDUSD back at the 0.7200 level, which is curbing further upside for now, while the 2019 high is situated at 0.7235. Eyes now turn towards the Fed meeting and trade talks.
GBP: Modest gains for the Pound today as markets assess Brexit developments. Following yesterday’s amendment votes, the government remains in control of the Brexit process with PM May looking to renegotiate the Withdrawal Agreement (more specifically, the Backstop), which may come to no avail given that the EU continue to explicitly state that the Withdrawal Agreement is not up for renegotiation. GBPUSD current in limbo as it hovers around the 1.31 mark.
Gold: Minimal price action throughout the European morning, bulls expecting further upside in the short term could be left temporarily disappointed if the Fed is less dovish than what the markets expect. Eyes on commentary surrounding the future Fed balance sheet.
DailyFX Economic Calendar: – North American Releases
Four Things Traders are Reading
- “Technical Forecast for Gold Price, Crude Oil, Dow Jones, DAX 30 & More” by Paul Robinson , Market Analyst
- “GBPUSD Outlook Positive After Drop on Concerns About a No-Deal Brexit” by Martin Essex, MSTA, Analyst and Editor
- “Gold Price Analysis: FOMC May Spark Short-Term Pullback” by Justin McQueen, Market Analyst
- “Eurozone Sentiment Misses Forecasts, EUR Shrugs” by Martin Essex, MSTA, Analyst and Editor
--- Written by Justin McQueen, Market Analyst
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