RBA Minutes On Tap For Monday, AUD/USD Technicals
Shain Vernier • 1 min read
As the Friday close nears, the end of another trading week is upon us. It has been a wild five days on the markets, featuring major action across many asset classes. Commodities have experienced enormous participation and trending currency pairs have defined the forex.
The past week has been a textbook example of what happens when politics and finance collide. Tuesday’s exit from the Iran nuclear deal by U.S. President Trump shook the markets, albeit for a shorter period than expected. Central bank activity dominated currency headlines with the likes of Powell, Orr, and Draghi taking center stage.
If you missed out on the action, there is no need to worry. Next week is jam-packed with events and opportunities ready to fill your trading account with green pips.
Staying with the theme of central banks, Monday’s U.S. overnight session features a release of the Reserve Bank of Australia (RBA) Meeting Minutes. Shortly thereafter, RBA Assistant Governor Guy Debelle is scheduled to break down the state of the Australian economy.
Earlier in the session, the AUD/USD tested and rejected topside resistance at the 38% retracement (.7562) of the current wave. This occurrence is an indication that the prevailing bearish trend is still valid.
Overview: Given the short-term weakness shown by the USD, a breakout above Friday’s session high (.7566) is a possibility on the RBA Meeting Minutes release. If we see muted action throughout the Monday forex session, then a bullish move toward .7600 may be in the offing by Wednesday.
Be sure to check in with FX Leaders ahead of next week’s market open. The ongoing news, previews, and analysis can help you hit the ground running Monday morning. Until then, remember that next week is always the best week!