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Forex Today: RBA holds rates and warns of recession

Forex Today: RBA holds rates and warns of recession

The Reserve Bank of Australia at its previous policy meeting left the cash rate unchanged at 4.35%, warning that rate cuts were uncertain while a recession remained a risk.

➡️ The Reserve Bank of Australia's policy meeting took place a few hours ago, with the bank leaving its cash rate at 4.35%, a 12-year high. The Bank has warned it may not be able to cut rates further in the coming months, even as Australia remains at risk of falling into recession. The Australian dollar does not appear to have been specifically affected by this, as its performance remains mixed against major currencies.

➡️ The stock markets they appear weakly bullish to bullish, with the S&P 500 index has recorded particularly strong progress in recent days. However, the index is still far from the all-time highs reached just a few weeks ago.

➡️ The Japanese yen continues to sell off this week, following big gains made last week following two suspected interventions in its favor by the Bank of Japan. The Bank again refused to comment on whether it intervened to try to support the yen. Currency crosses often rebound the following week against an unusually large move from the previous week, and this appears to work against the Yen. It might be wise to look for long trades on Yen crosses, Mostly in AUD/JPY , CAD/JPY And CHF/JPY .

➡️ In the Forex market , since Tokyo opened today, the strongest major currency has been the New Zealand dollar, and the weakest major currency has been the Japanese yen, focusing the NZD/JPY currency cross .

➡️ Greyscale Bitcoin Trust, the world's largest cryptocurrency investment vehicle, has seen a new inflow of funds for the first time since Bitcoin ETFs were approved, suggesting there may be strong retail buying behind the recent price recovery of Bitcoin .

 

Credit by DailyForex.com

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