News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Article and webinar recording can be found here - https://www.dailyfx.com/forex/market_alert/2021/03/03/Dow-Jones--Nasdaq-100-Forecasts-for-the-Week-Ahead.html?ref-author=phanks&QPID=917701&CHID=9
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.01% US 500: -0.01% FTSE 100: -0.42% Germany 30: -0.43% France 40: -0.49% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/hHbUxemSVz
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/AfAhmIoVZv https://t.co/MR33o8KmJM
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/NNR3IO1gZ7
  • $NDX extends intraday losses as fears over rising yields continue to haunt high-flying equities https://t.co/RswgSX3Rk6
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.16% Gold: -1.47% Silver: -2.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GVZ4EpYejd
  • This smells like a head-and-shoulders pattern from the Nasdaq 100 ($NDX) but we don't see the same picture from the S&P 500, Dow or Russell 2000 https://t.co/GekQLeiCEg
  • Lot's of things down today, but know what isn't? Yup, longer-term #Treasury yields An average of the 10Y and 30Y having best day in about a week = portfolio rebalancing play still front and center Fed's Evans expressed little concern about yields https://t.co/tmqCSHTnIG https://t.co/MqUumhMNxI
  • - Non-labor input costs rose moderately, particularly steel and lumber prices - Rising costs attributed to strong demand and supply chain issues - Several districts anticipate modest price increases over the next several months
  • - Commercial real estate continues to struggle, particularly offices, retail, and hotels - Low mortgage rates spurred additional demand for homes - Financial institutions reported lower loan volumes, along with lower delinquency rates and higher deposit levels
Australian Dollar Steady As RBA Minutes Show Bank Content To Wait

Australian Dollar Steady As RBA Minutes Show Bank Content To Wait

David Cottle, Analyst

Australian Dollar, Reserve Bank of Australia Monetary Policy Minutes, Talking Points:

  • The RBA left rates on hold on April 7 after two March reductions
  • It has clearly opted to see what effect current measures will have before considering more
  • The AUD market had guessed as much

The Australian Dollar was steady on Tuesday following the release of minutes from the last Reserve Bank of Australia monetary policy meeting, on April 7.

The central bank left its key Official Cash Rate at 0.25% after it. declining the quarter-point reduction that markets narrowly expected. The OCR fell twice in March, however, to its current record low of 0.25%, with an extra cut added as part of measures to mitigate the economic effects of the coronavirus.

The minutes left the perhaps predictable impression that. considerable monetary and fiscal stimulus having been applied, the central bank was now content to wait and see what more was needed.

In the minutes, the RBA said ‘various responses;’ already made were ‘providing considerable support’ to households and businesses. However, it cautioned that support packages couldn’t provide a near-term boost to spending while the economy was subject to lockdowns.

The central bank recommitted itself to a three-year bond yield target of 0.25%, but said that smaller, less frequent purchases of government bonds may be required going forward.

The Australian Dollar was under some pressure as the Asia Pacific session got under way Tuesday. Collapsing oil prices had put renewed focus on haven assets rather than growth-correlated units like the Aussie. However, AUD/USD stabilized early in the session and didn’t move far on the minutes.

Australian Dollar Steady As RBA Minutes Show Bank Content To Wait
How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by David Cottle
Improve your trading with IG Client Sentiment Data
Get My Guide

The Australian Dollar has bounced back impressively from its March lows, buoyed up like many other growth-correlated assets by the massive fiscal and monetary rescue packages put in place by various governments, most notably of course the US.

Australian Dollar Steady As RBA Minutes Show Bank Content To Wait

However, while these measures may have reduced the chance of a damaging ‘credit event,’ stimulus measures can’t fully operate until economic agents are free to engage with the economy again. As they clearly can’t do this under lockdown conditions, it seems likely that risk assets such as the Australian Dollar will face a rethink.

It’s notable that this year’s downtrend remains in place.

Attention now switches to the next policy decision which is not due until May 5. Current futures market pricing has markets expecting a reduction by a margin of 57%.

Australian Dollar, Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES