Some Big Moves as Markets Gain Ground
Rowan Crosby • 2 min read
Markets have been busy over the last 24 hours, with some bigger than expected moves in some of the majors a real focal point.
Yesterday, we saw some better than expected Chinese data, which led to a bit of a rally in commodities. That looks like it will be following through into Asian trade today.
Meanwhile, it was the big fundamentals that were driving most of the majors. UK PM Boris Johnson has seen his push for an early election fail after more problems trying to get any type of Brexit deal through parliament appear to be ongoing. The GBP/USD rallied sharply yesterday, after trading at near two-year lows.
The BOC left interest rates unchanged at 1.75%, however, the odds of a rate cut appear to be not what they were. Governor Poloz, didn’t sound like he was keen to make any changes to rates despite the market pricing them in. As a result the USD/CAD fell sharply.
Asian Market Outlook
The AUD/USD has been on a bit of a tear in the last 24-hours and is now back trading at the 0.6800 level. There is a good chance that this level will hold in my opinion, however, we will need to see how the sentiment of the day plays out.
There is trade balance data out in Australia, which follows a big week which included the RBA, Retail Sales and yesterday’s GDP. On the back of the better Chinese data and GDP not missing, the Aussie has been very strong.
Trade balance is likely not a big market mover and we will continue with the real sentiment trade at the moment.
The other consideration is the USD and that has been a bit weak after rally strongly in the last few sessions. It gave back plenty yesterday, so there is every chance of a quick retrace today.