Advertisement
Advertisement
Advertisement
24option
BREAKING NEWS : $500 - $5000 No Deposit Bonus Hurry up, Join Now!
Written by experienced traders and professional market analysts, our Forex technical analysis is just what you need to get an edge in your Forex trading
Advertisement

Aussie range bound; investors reluctant to extend upside momentum

Written by By Mike “Mish” Shedlock's | 2019-06-12 00:12:00 GMT

AUD - Australian Dollar

Having rallied into last weeks close and flirting with an extension beyond 0.70 the AUD remained largely range bound through trade on Tuesday. Bouncing between 0.6948 and 0.6966 the AUD struggled to gather any real momentum despite a sharp rise in business confidence. While the NAB’s business confidence report purported a steep increase in corporate optimism, business conditions deteriorated as broader optics depict an economy losing momentum.

Investors appear reluctant in extending AUD upside as Global Growth concerns, ongoing trade tensions and fragile domestic economic conditions plague the domestic unit. With the market pricing in further RBA rate cuts attentions turn to Thursday labour market data. Lacklustre employment growth and a rise in unemployment will place mounting pressure on the RBA to back end this month’s rate cut with a second in July. Swaps pricing is showing an increased expectation the board will loosen policy rates again before October weighing on the AUD and limiting upward momentum.

Key Movers

The dollar edged lower through trade on Tuesday when measured against a basket of counterparts as attentions turned from trade with Mexico to Trade with China and the ongoing hostilities between the two superpower economies. Economic data signals have showed signs the trade war is beginning to weigh on US domestic growth, amplifying calls for the Federal Reserve to cut interest rates after a sustained period of tightening.

Tuesday saw a tepid increase in produce prices suggesting todays CPI print will provide little in the weigh of upward price momentum. A soft inflation read followed by a slow down in domestic retail sales on Friday would add further evidence that tariffs are slowing the economy and in this low inflation environment stagnating growth becomes all the more critical in front running monetary policy change. With swap pricing and forward points moving against the USD the tide of upward momentum for the worlds base currency may be turning.

Attentions today remain affixed to US CPI and commentary for ECB president Draghi. Any clues the ECB are willing to ease policy further will weigh on the combined unit.

Expected Ranges

AUD/USD: 0.6880 - 0.7020 ▼

AUD/EUR: 0.6080 - 0.6180 ▼

GBP/AUD: 0.6080 - 0.6180 ▼

AUD/NZD: 1.8180 - 1.8380 ▲

AUD/CAD: 0.9210 - 0.9280 ▲

Author

By Mike “Mish” Shedlock's

Start Trading With Top Industry Brokers

Broker Profile Open Account
xm
  • Minimum Deposit: 5 USD
  • Leverage of up to1:500
  • Broker Type : Market Maker
  • Regulation : CySEC 120/10 (Trading Point of Financial Instruments Ltd) ASIC 443670 (Trading Point of Financial Instruments Pty Ltd) FCA 705428 (Trading Point of Financial Instruments UK Ltd)
  • xm
    FBS
  • Offer: 50USD No Deposit Bonus
  • Offer: 100% Deposit Bonus
  • Minimum Deposit: 1 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CRFIN (Russia), 009069697 IFSC (Belize), IFSC/60/230/TS/12
  • FBS
    Trade
  • Offer: 30USD No Deposit Bonus
  • Minimum Deposit: 25 USD
  • Leverage of up to 1:500
  • Broker Type : ECN/STP & STP
  • Regulation : FSA SD008
  • Tickmill

    The Best Crypto to Crypto

    Exchanger Advantages Open Account
    binance
  • Safety Stability: Multi-tier & multi-cluster system architecture
  • Binance charges a quite low commission fee
  • Multiple-Coin Support : BTC, ETH, LTC, BNB...
  • High Liquidity
  • Multiple-Language Support
  • binance
    changelly
  • Instant cryptocurrency exchange
  • More than 500,000 satisfied users
  • Changelly charges a quite low commission fee
  • Safety Stability
  • changelly
    bitmex
  • Bitmex - Bitcoin Mercantile Exchange is a cryptocurrency derivatives trading platform.
  • Bitmex charges a quite low commission fee
  • Safety Stability
  • changelly

    Best Brokers to Trade Crypto

    Broker Profile Open Account
    XM
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:30
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • XM
    FBS
  • Offer: 50USD No Deposit Bonus
  • Offer: 100% Deposit Bonus
  • Minimum Deposit: 1 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CRFIN (Russia), 009069697 IFSC (Belize), IFSC/60/230/TS/12
  • FBS
    HotForex
  • Offer: 100% Deposit Bonus
  • Minimum Deposit: 50 USD
  • Leverage of up to 1:500
  • Broker Type : STP
  • Regulation : CySEC, 183/12 FSC (Mauritius), 094286
  • HotForex

    Contact us
    fxvnpro@gmail.com
    kieuthanhgc@gmail.com