RBA Minutes – As You Were:
A little later than normal for today’s Daily Market Update, but with the already old news that is the RBA Meeting Minutes coming mid morning, a recap is probably more useful than a preview anyway.
Casting our memories back to the 1st Tuesday of the month, we remember that the RBA held the cash rate steady at 2%. This was the 5th month in a row that the RBA sat on their hands and with a lack of any dovish guidance alongside the decision, the Aussie dollar got a much needed injection on the buy side.
Today’s minutes from the October meeting gave us nothing to expect anything different anytime soon, with a lack of guidance or a good old fashioned ‘jawboning’ highlighting the RBA’s neutral stance.
The @LiveSquawk account is excellent in terms of real time news analysis, and well worth a follow to compliment your trading. Here is their summary of the minutes:
“RBA Mins: Overall growth expected to have strengthened In Q3 – Spare capacity in economy, domestic cost pressures low.”
“RBA: Economy’s rebalancing increasingly supported by A$ fall – More evidence of economy rebalancing toward non-mining.”
“RBA: Labour market strengthened More than Expected – Recent Data Raising Concern Over China and East Asia, Weighing On Aus Exports.”
AUD/USD Hourly:
As you can see earlier in the month, the actual interest rate decision gave the Aussie a nice little kick after what was perceived as a ‘less dovish than expected’ RBA.
Interestingly, today’s minutes coincided with price sitting right on the confluence of support that we were watching yesterday. With the minutes not giving the market anything new to sink their teeth into, the technical level once again gave an opportunity for buyers to enter the market.
For me, the path of least resistance is still clearly to the upside. I have a feeling that we could be looking back at this level in a few weeks time and wondering how we were pedantically debating whether the area provided value.
On the Calendar Tuesday:
AUD Monetary Policy Meeting Minutes
USD Building Permits
USD FOMC Member Dudley Speaks
USD FOMC Member Powell Speaks
Chart of the Day:
With the Aussie and kiwi so often moving hand in hand, after yesterday’s AUD/USD chart in the Daily Market Update, we today take a look at NZD/USD.
NZD/USD Hourly:
It’s the same story across the Tasman, with price bouncing after a long and sustained down trend. It is this short term bounce that has given us the above hourly trend line.
This kiwi chart has given you opportunity after opportunity to buy each trend line re-test, with confirmation being the broken short term flags that show momentum is still with the buyers. You can learn a lot in hindsight by looking at this chart and how price reacts to and moves between support and resistance zones inside trends.
Do you still see opportunity in the kiwi/dollar?
Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by MT4 Forex Broker Vantage FX Pty Ltd, does not contain a record of our prices, or an offer of, or solicitation for, a transaction in any financial instrument. The research contained in this report should not be construed as a solicitation to trade. All opinions, news, research, Forex Broker analysis, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently any person opening a Forex trading account and acting on it does so entirely at their own risk. The experts writers express their personal opinions and will not assume any responsibility whatsoever for the actions of the reader. We always aim for maximum accuracy and timeliness and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.