Good day traders.
Crude oil is trading lower at the moment on hopes for peace with Iran, while at the same time US yields are also recovering, which is keeping US stocks supported. Looking at the dollar, however, the picture is mixed. The US dollar is down againts eur, but stronger against pound some major currencies, like JPY and CAD. But what stands out today is Aussie weakness, while metals are also coming down despite the pullback on US yields, so it looks like the dollar itself is currently ignoring what yields are doing, which is quite interesting. Sooner or later, however, one of these markets will likely have to catch up.
The biggest mover in the last few hours is certainly Aussie, which is dropping sharply across the board, exactly as we discussed in detail in our updates, latest videos and yesterday’s webinar. We highlighted that unemployment in Australia had already jumped, and we said that if inflation softened or came out around expectations, then the RBA could definitely stay on hold.
That is exactly what happened as inflation slowed from 4.6 to 4.2 percent, which is why we are now seeing a pretty aggressive reversal lower on Aussie. It looks like there could still be much more weakness ahead, while some of the crosses like EURAUD and GBPAUD may continue to see further gains. Even AUDNZD is turning lower after the hawkish hold from the RBNZ. If you missed yesterday’s webinar, then make sure to watch it below.
Grega
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