AUD/USD

The Bank of Canada’s (BOC) hawkish hike weighed on sentiment as it rekindled some concerns that central banks are not as close to their terminal rates as originally thought.

Australian Dollar rallied more than 3.8% off the yearly low with a two-week advance now testing critical resistance. The levels that matter on the AUD/USD weekly chart.

The RBA decided to pull the trigger once more, and hiked their cash rate by another 25bp to a 13-year high of 4.1%.

Soft US economic data all but cements a Fed pause at their next meeting, helping to support AUD/USD ahead of today's RBA meeting (which has the potential to be live).

The recent rebound in AUD/USD appears to be stalling ahead of the 50-Day SMA (0.6663) as it struggles to extend the series of higher highs and lows from last week.

A hot inflation report and hefty wage increase for minimum-wage earners has seen a rise in bets the RBA could hike at tomorrow’s meeting.

In this week’s edition, we discuss the EUR/USD, AUD/USD and USD/CAD forecast and look forward to the macro events in the week ahead.

Australian Dollar plunged into major support at the yearly lows today- moment of truth for the bears. The levels that matter on the AUD/USD short-term technical charts.

The RBNZ (Reserve Bank of New Zealand) are expected to hike by another 25bp tomorrow, despite 1 and 2-year inflation expectations plummeting at their fastest pace since the pandemic.

The commitment of traders (COT) report shows how large speculators are positioned across futures markets on the CME exchange.

With wage growth slightly above expectations yesterday, a strong employment report could have seen further calls for RBA to hike in June. Only, employment was softer.

Data prints coming out of Australia may keep AUD/USD afloat as the Reserve Bank of Australia (RBA) keeps the door open to implement higher interest rates.

Whilst the RBA minutes suggest their decision to hike in May was ‘finely balance’ between a hike and a pause, the central bank remain data dependant.

Australian Dollar plunged nearly 1.8% off the monthly high with AUD/USD turning from technical downtrend resistance. The levels that matter on the Aussie weekly chart.

Risk-appetite-sensitive assets, including commodity currencies like the Canadian and Australian dollars, are seeing strong selling pressure amidst slowing US data

The US Dollar remains near longer-term support after this morning’s CPI report and EUR/USD and GBP/USD are both testing key spots of big picture resistance.