The Reserve Bank of Australia holds rates, sees the current rate as working, but warns that further tightening is possible if warranted.
➡️ The Reserve Bank of Australia's policy meeting earlier today led to the decision to keep the cash rate at 4.10%. Governor Lowe said the higher rates are working to reduce inflation, which is past its peak but still too high. Lowe warned that further tightening remains possible. The Australian dollar reacted by falling a bit against most other currencies.
➡️ Global stock markets are mostly a bit lower since the Asian open, with most indexes also lower at yesterday's New York close. However, the broader view remains latently bullish.
➡️ In the Forex market, in the short term, the weakest currency is the Australian dollar, while the Swiss franc was the strongest currency in the Forex market today, putting the AUD/CHF currency in focus. The USD/JPY currency pair advanced firmly yesterday and remains within a valid long-term uptrend. Trend traders and return traders will be interested in being long this currency pair.
➡️ There are rallies in several commodities, with the most notable being WTI Crude Oil and Brent Crude Oil which reached long-term high prices last Friday, which will be of interest to trend traders on the Long side. The price of crude oil has held firm since Friday's close, suggesting that an advance to a new high is likely.
➡️ Gold's recent advance appears to have stalled for some time after repeatedly failing at the resistance level confluent with $1,950.
➡️ Tomorrow there will be a release of Australian GDP data, which is expected to show a quarterly increase of 0.3%.
Credit by DailyForex.com