Australia is printing its quarterly inflation figures!
Will the report assist AUD/USD lengthen its downtrend forward of the Fed’s resolution?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/JPY’s Fibonacci pullback ahead of the FOMC’s decision. Make sure you try if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final trading sessions:
Recent Market Headlines & Financial Information:
CBI: UK manufacturing facility output slows from +19 to +6, worth pressures come off peak
Russia to chop Nord Stream 1 gasoline to twenty% of capability, escalating power tensions over Ukraine conflict
Russia turns into China’s largest oil provider as costs drop
Coinbase faces US SEC probe over cryptocurrency listings
Assembly minutes: BOJ agreed on want for low charges, noticed wage hikes as key to outlook
Russian gasoline lower to Europe hits financial hopes, Ukraine reviews assaults on coastal areas
Oil rises for a second day on provide tightness considerations
U.Okay.’s CBI realized gross sales at 11:00 am GMT
U.S. S&P home worth index at 1:00 pm GMT
U.S. CB client confidence at 2:00 pm GMT
U.S. new dwelling gross sales at 2:00 pm GMT
U.Okay. BRC store worth index at 11:01 pm GMT
AU quarterly CPI at 1:30 am GMT (Jul 27)
Use our new Currency Heat Map to rapidly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
Should you’ve been carefully watching comdoll pairs as I’ve, then you definitely’ll know that AUD/USD has been buying and selling beneath a trend line resistance since mid-April when the pair acquired rejected at .7600.
The ball is on the bears’ aspect in the present day as AUD/USD retests its development line resistance.
After all, it additionally helps that the development line is true across the 50% Fibonacci retracement of June’s downtrend and that there’s a bearish divergence on the 4-hour timeframe.
Australia’s quarterly CPI report ought to warmth issues up for AUD bulls and bears. Markets anticipate client costs to decelerate in Q2 in comparison with Q1’s progress figures.
If Australia’s inflation unexpectedly heats up, then RBA Governor Lowe and his staff could make good on their hints of additional price hikes of their subsequent conferences.
AUD/USD may bust by means of its months-strong development line resistance and hit areas of curiosity like .7050 or .7225.
If client worth will increase decelerate, nevertheless, or if merchants return to purchasing USD forward of the Fed’s resolution this week, then AUD/USD may lengthen its downtrend.
AUD/USD’s development line resistance might maintain and assist drag AUD again to its month-to-month lows.