Australia is printing its quarterly inflation figures!
Will the report assist AUD/USD lengthen its downtrend forward of the Fed’s determination?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/JPY’s Fibonacci pullback forward of the FOMC’s determination. Be sure you take a look at if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Contemporary Market Headlines & Financial Knowledge:
CBI: UK manufacturing facility output slows from +19 to +6, worth pressures come off peak
Russia to chop Nord Stream 1 fuel to twenty% of capability, escalating power tensions over Ukraine conflict
Russia turns into China’s largest oil provider as costs drop
Coinbase faces US SEC probe over cryptocurrency listings
Assembly minutes: BOJ agreed on want for low charges, noticed wage hikes as key to outlook
Russian fuel reduce to Europe hits financial hopes, Ukraine reviews assaults on coastal areas
Oil rises for a second day on provide tightness considerations
U.Ok.’s CBI realized gross sales at 11:00 am GMT
U.S. S&P home worth index at 1:00 pm GMT
U.S. CB shopper confidence at 2:00 pm GMT
U.S. new residence gross sales at 2:00 pm GMT
U.Ok. BRC store worth index at 11:01 pm GMT
AU quarterly CPI at 1:30 am GMT (Jul 27)
Use our new Foreign money Warmth Map to rapidly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
For those who’ve been carefully watching comdoll pairs as I’ve, you then’ll know that AUD/USD has been buying and selling under a pattern line resistance since mid-April when the pair bought rejected at .7600.
The ball is on the bears’ aspect at present as AUD/USD retests its pattern line resistance.
In fact, it additionally helps that the pattern line is true across the 50% Fibonacci retracement of June’s downtrend and that there’s a bearish divergence on the 4-hour time-frame.
Australia’s quarterly CPI report ought to warmth issues up for AUD bulls and bears. Markets count on shopper costs to decelerate in Q2 in comparison with Q1’s development figures.
If Australia’s inflation unexpectedly heats up, then RBA Governor Lowe and his crew could make good on their hints of additional fee hikes of their subsequent conferences.
AUD/USD might bust by means of its months-strong pattern line resistance and hit areas of curiosity like .7050 or .7225.
If shopper worth will increase decelerate, nonetheless, or if merchants return to purchasing USD forward of the Fed’s determination this week, then AUD/USD might lengthen its downtrend.
AUD/USD’s pattern line resistance might maintain and assist drag AUD again to its month-to-month lows.