The Aussiestole the show due to inflation figures hitting target, and probably eradicating any fears of a rate cut this year. Had ot not been for the Australian data then the session would have been quiet across the board for FX.
- BoE MPC Votes: Traders will be looking to see if the last rate decision (to keep on hold) was unanimous, as it has been previously, or if some voting members are beginning to vote for a rate increase. If so we can expect this to be a bullish sign of cable which currently rests above key support.
- CAD Retail Sales: Expected to be growing at a slightly slower rate of 0.6%. Anything at or above this level could see USDCAD retrace towards (and possibly below) 1.07 support. However any poor numbers here should be USDCAD bearish and see USDCAD trade closer to 1.080 resistance.
- RBNZ Rate Decision: Please view today's post for an overview of this release
TECHNICAL ANALYSIS:
GBP/USD: The voting members should dictate Sterling moves today
The key levels have remained fairly consistent these past few weeks but the daily timeframe is making suggestions of a potential base forming (not pictured). Yesterday closed with a 2nd bullish hammer above 1.704 support to suggest a swing low is forming.
However I am also keeping in the back of my mind for a retest of 1.07 before gains continue.
That said for a bullish move we would require some of the voting members to have switched from neutral to 'rate hike'. We can only assume that if they remain unanimous (neutral) then a retest of 1.07 is more likely.