Trading Forex and CFDs is risky
Read HotForex Daily Market Analysis

Ahead of RBA Statement

Market Analysis

AUDUSD, Daily

Aussie crosses are in focus, ahead of RBA Statement and Rate decision early tomorrow. The Reserve Bank of Australia is seen holding rates steady at the current 1.50% rate setting tomorrow, along with current account and Retail sales. The Q3 current account deficit is seen narrowing to -A$9.0 bln from -A$9.6 bln. Retail sales are expected to expand 0.3% m/m in October after the flat reading in September. Aussie is being weak against Euro and US Dollar since July, particularly after the governor of the RBA noted in his post policy meeting statement that “an appreciating exchange rate would complicate” the economy’s ongoing transition from the mining investment boom. This along with dollar strength and Eurozone growth had seen the Aussie lose against the dollar and Euro.

Ahead of RBA Statement tomorrow, AUDUSD is in focus, for a possible entry opportunities after the Statement. AUDUSD has been identifies in a Falling wedges in November, despite the downtrend of thepair seen since late August. The pair has been traded below all 3 moving averages, with long term momentum indicators moving below neutral for a while. Hence the overall picture of the pair is weak, with further weakness to follow especially on the break of the last low fractal at 0.7530. 

However with falling wedge indicating a bullish movement in the short-term,  only a break above the upper line of the Falling wedge, but more precisely above 0.7645 – 0.7660, could indicate a buying opportunity in the short term, and a possible retest of 200-DMA at 0.7690.

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Andria Pichidi

Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Risk Disclosure.

Risk Warning: Remember Forex and CFDs are leveraged products and can result in the loss of all invested capital. Please consider our Risk Disclosure.