Commodity currencies are getting hit hard today, especially the antipodeans. The Australian dollar fell over 1% against the US dollar, as recent comments from the RBA weighed on market sentiment. Central bank left interest rates unchanged at the meeting today and purchases of government bonds are set to continue at A$4 billion per week. However, RBA decided to drop the yield control program, citing improvement in the Australian economy and earlier-than-expected progress towards the inflation target. However, RBA governor Philip Lowe said that the Australian central bank is prepared to be patient, and that it would not increase the cash rate until inflation was sustainably within the 2-3% target range, which he stated would likely take some time as wage growth remained materially lower. Meanwhile investors expected a more hawkish stance. Now market attention turns to the Fed on Wednesday and the Bank of England on Thursday. The Fed is expected to announce the start of tapering its bond-buying program. Markets also are pricing an interest rate hike at the Bank of England meeting. If the FED's decision turns out to be more hawkish than expected, it could lead to a further weakening of the Australian dollar.
AUDUSD pair broke below support at 0.7460 which coincides with 38.2% Fibonacci retracement of the last downward wave. If current sentiment prevails, downward move may accelerate towards next support at 0.7340 which is strengthened by 23.6% Fibonacci retracement and 50 SMA (green line). Source: xStation5
Daily summary: Wall Street tries to stop the sell-off 📌Gold down 1.8%, Bitcoin loses 4.5%
BREAKING: Canadian Wholesale & Manufacturing Sales higher than expected 📊USDCAD reacts
BREAKING: EU GDP data slightly above expectations! 📈💶
UK: pound and bonds tumble
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
