RBA Hikes A Further .5%
It’s been a volatile day for AUD traders. On The back of yet another RBA rate hike overnight, the Aussie was initially leading the G10 currency pack today. However, resurgence in the US Dollar and the subsequent drop in risk sentiment has weighed sharply on the Aussie, sending the currency lower as we move through the European morning.
The RBA delivered on expectations for a .5% hike overnight, taking rates back up to 1.35% there. Additionally, the RBA noted that it will now adopt a data-dependent approach to further rate hikes meaning that, should inflation continue to run above target, further rate hikes will be appropriate. Similarly, if CPI is seen cooling, the RBA has the optionality to pause hikes as it sees fit.
Commenting on the current state of the Aussie economy, the RBA chief Phillip Lowe said: “The recent spending data have been positive, although household budgets are under pressure from higher prices and higher interest rates. The Board will be paying close attention to these various influences on household spending as it assesses the appropriate setting of monetary policy.”
Technical Views
AUDCHF
The sell-off in AUDCHF has seen the pair breaking down through the rising trend line off YTD lows and the .6677 support level. Though price is currently holding at deeper support, while the market holds below the broken trend line, focus is on a further breakdown towards .6419, in line with bearish RSI and MACD readings.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.