The Reserve Bank of Australia decided at today's policy meeting to keep the interest rate at 4.35% and said inflation continues to moderate, which is seen as accommodative.
➡️ The Reserve Bank of Australia held the cash rate at 4.35% at its policy meeting a few hours ago, with Governor Bullock saying “inflation is continuing to moderate”, which is seen as a dovish bias. The Australian dollar weakened slightly following the release. , with the AUD/USD currency pair fell to its lowest level since last Thursday.
➡️ After hitting new highs during Monday's Asian session, risk assets experienced a sharp sell-off yesterday, which accelerated during the New York session. Gold, Bitcoin , Ethereum and tech stocks have all retreated from long-term highs, with the gold sell-off probably the most dramatic. Some analysts believe this is due to mixed sentiment over the prospect of Fed rate hikes, with optimism replaced by pessimism and vice versa on an almost daily basis. Gold hit an all-time high at $2,135, but fell to the $2,020 area, although it has since stabilized slightly above that price area.
➡️ Bitcoin continued to weaken after hitting a new 18-month high a few days above the big round number of $40,000. The cryptocurrency is currently threatening to break below the key support level of $41,706.
➡️ The long-term bearish trend of the US dollar is a key factor in the Forex market, driven by a sense that the Federal Reserve has likely finished its current tightening cycle and will begin cutting rates. However, the US dollar is currently gaining ground, as it has done in recent days. Since Tokyo opened, the Japanese yen has been the strongest major currency, while the Australian dollar has been the weakest.
➡️ Cocoa futures continue to appear bullish after closing Friday at a new multi-year high. This commodity remains very interesting for traders who follow bullish trends.
➡️ Crude oil it seems weak despite Saudi reassurances on OPEC cuts yesterday, and appears to be tumbling towards a new 4-month low
➡️ High-impact data releases are expected today:
- US ISM services PMI
- JOLTS Jobs in USA
- Australian GDP
Credit by DailyForex.com