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Forex Today: RBA approves rate hike

Forex Today: RBA approves rate hike

The Reserve Bank of Australia announced it will keep its interest rate at 4.10%, contrary to broad expectations that it would raise its rate by 0.25%.

➡️ The Reserve Bank of Australia surprised the market by keeping rates on hold at 4.10%. It was expected to rise 25 basis points. The Bank included conditional tightening language in its rate statement, but it looks increasingly likely that the terminal rate in the current tightening cycle has now been reached. The Australian reacted by losing value and the Australian stock market gained slightly.

➡️ Stock markets look mostly bullish today, as Asian markets continue to rally. The HSI and Nikkei 225 Index both appear to close higher for the day.

➡️ In the Forex market, the US dollar is continuing its medium-term advance against its long-term bearish trend, with the price now threatening to break out of the key resistance at 101.56. Since the Tokyo session started today, the Australian dollar is the weakest major currency, while the US dollar is the strongest, bringing the AUD/USD currency pair into focus.

➡️ There will be releases today in the US of JOLTS Job Openings and ISM Manufacturing PMI data.

➡️ Energies are continuing to rise, with WTI Crude Oil futures hitting a new 3-month high again yesterday, on evidence of supply shortages. This may be of interest to trend traders.

➡️ In the commodities market, cocoa futures will continue to be attractive on the long side for trend traders, having reached a multi-year high price last Thursday.

➡️ There will be an unemployment rate release today in New Zealand.

 

Credit by DailyForex.com

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