Risk Appetite Improves, RBA Stands Pat, Brexit Talks in Focus

Investors Keep Pushing Risky Assets North

The US dollar continued trading south against most of the other G10 currencies on Monday and during the Asian morning Tuesday. It underperformed the most versus CAD, AUD, and NZD in that order, while it eked out minor gains only against EUR, CHF, and JPY.

AUD/JPY — Technical Outlook

AUD/JPY is still comfortably moving higher, while balancing above a short-term upside support line taken from the low of May 15 th. This morning, the pair is already testing the high of yesterday, at 73.30, which suggests that the bulls are still willing to drive AUD/JPY higher. We will remain positive and aim for higher areas, as long as the pair stays above the aforementioned upside line.

RBA Stands Pat, Brexit Talks Restart

Speaking about the Aussie, during the early morning today, we had an RBA decision. However, there were no fireworks in the aftermath. The Bank kept its benchmark rate and the target of its 3-year government bond yields unchanged at +0.25%, with officials noting that they have purchased government bonds on only one occasion since the previous meeting. They also repeated that they are prepared to scale-up bond purchases again if necessary.

GBP/AUD — Technical Outlook

GBP/AUD continues its journey south, after the reversal in the beginning of April. The pair is trading below a tentative downside resistance line taken from the highest point of May, which if stays intact could indicate the direction in which the rate might move further. That said, to get a bit more comfortable with further extensions to the downside, we would like to see a drop below yesterday’s low, at 1.8332.

As for the Rest of Today’s Events

The economic calendar for today appears very light with no major economic indicators on the schedule. The only one worth mentioning is the API (American Petroleum Institute) weekly report on crude oil inventories, but as it is always the case, no forecast is available.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
JFD

JFD

JFD is a leading Group of Companies offering financial and investment services and activities.