Morning Preview: USD the Laggard on RBA Day
Rowan Crosby • 1 min read
If you’re an Aussie or at the very least a trader of the AUD, then we have a big day ahead. While expectations are low for a change in the official cash rate at today's meeting of the RBA, you never know what might be in store.
Overnight it was the USD that was the lagger. I spoke yesterday about the USD/JPY and the USD/CHF in particular as they were struggling at overhead resistance and sure enough both sold off.
The GBP was the big surprise packet as it rebounded in a move that we might have expected on BOE day. We are now trading in a nice range that we might be able to capitalize on going forward.
As expected the US Dollar Index wasn’t able to break through overhead resistance and has weakened touch. We’ve had good support at 94.50, so I’m going to wait on a move towards that level before getting bullish on the USD in the short term. The weakness might help with the GBP, which I think has some more upside potential.
US Dollar Index (DXY) – 240 min Chart.
Top Economic Events This Week
AUD – RBA Interest Rate Decision
USD – Jolt Job Openings
NZD – RBNZ Interest Rate Decision
GBP – Manufacturing Production