Here we go again, my friends. It’s time to look critically into the future of what trading opportunities September might have in store for us. As always, it is essential to note that the views expressed here are mine and should not be considered financial advice without proper examination.
AUD/USD is catching falling knives
2019-11-11 • Updated
TP1 0.7606 TP2 0.765
On the daily chart, AUD/USD after reaching 88.6% target of the “Shark” and a pullback to 23.6% of the wave CD, there was a resumption of a downtrend. The Australian dollar is heading to convergence area at $0.7495-0.7500 (113target of the “Shark” + 78.6% correction level), at which there are odds of a rebound.
On H1, an advance to 224% target of AB=CD creates an opportunity for aggressive longs. Conservative entry requires confirmation.
The Reserve Bank of Australia (RBA) has opted to keep interest rates steady at 4.1% for the second consecutive month, signaling a new phase in its approach to tackling inflation. The RBA's governor, Philip Lowe, referred to this stage as the "calibration phase," where the central bank makes subtle adjustments to its policy.
Today, the Bank of England has decided to raise interest rates to combat inflation. In its recent report dated the 3rd of August, 2023, the BOE confirmed that it had raised interest rates to 5.25%, expecting that the inflation rates would drop to 2%.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.