Gold prices bounced back on Wednesday, reaching $2,173.60 after briefly dipping to $2,150.00. Traders speculate that the US Federal Reserve (Fed) might reduce borrowing costs, but a recent report showing higher-than-expected inflation in the US could delay such actions. Despite signs of a cooling labor market, the US economy remains robust, with inflation
Will Australia's "Rampant Inflation" Prevail in May?
2023-05-01 • Updated
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has suggested that these individuals will be the ones to benefit the most from the decision. Moreover, the market is currently seeing record levels of competition, which is great news for consumers, as banks are vying to win over as many customers as possible. With 880,000 borrowers coming off their fixed-rate mortgages this year, the market will be even more competitive than ever. So, if you're a forex trader keeping an eye on the Australian market, here are a few technical analyses to assist.
AUDUSD - Daily Timeframe
AUDUSD closed last week with a reversal pin bar candlestick. My major interest, however, is that the reversal candle was formed right inside a drop-base-rally demand zone, thus confirming a bullish intent with the 100-Day moving average as a likely target.
Analysts’ Expectations:
Direction: Bullish
Target: 0.67028
Invalidation: 0.65567
AUDNZD - Daily Timeframe
The AUDNZD chart above is clear on one thing; the intent of the current price action is bullish. This can be judged based on the break of the previous high (at the second retest of the trendline), the reaction from the drop-base-rally demand zone, the retest of the trendline, and the 76% of the Fibonacci retracement tool.
Analysts’ Expectations:
Direction: Bullish
Target: 1.08727
Invalidation: 1.06193
AUDJPY - Daily Timeframe
AUDJPY's price action is currently within the range of a drop-base-drop supply zone. This same zone is also a confluence area for the two resistance trendlines. Considering the bearish alignment of the moving averages, the bearish sentiment is the most logical conclusion based on the observed data we've already discussed.
Analysts’ Expectations:
Direction: Bearish
Target: 89.084
Invalidation: 91.798
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more of such trade ideas and prompt market updates on the telegram channel.
Similar
Ahead of the release of US February Retail Sales data, the US Dollar (USD) is showing a modest recovery. Analysts at BBH assess the potential impact of the upcoming data on the USD. A soft reading in spending could prompt another downward correction in the USD, as it might indicate a weakening consumer sentiment. Market expectations...
The US Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) in the US increased to 3.2% year-over-year in February from 3.1% in January. The Core CPI, which excludes volatile food and energy prices, rose 3.8% year-over-year, slightly below January's 3.9% but above market expectations of 3.7%. Both the CPI and Core CPI also rose by 0.4% on a monthly basis.
Latest news
The Reserve Bank of Australia (RBA) is widely anticipated to maintain its current interest rates at 4.35% following its two-day meeting concluding on Tuesday. Despite holding rates steady since December, the RBA has hinted at the possibility of further rate hikes due to persistently high inflation, which has exceeded its target range of 2% to 3%.
Coinbase (#COIN) saw its revenue rise to $773 million in Q1 2024, marking a 23% increase from the previous quarter and surpassing analyst expectations.
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...