AUD/USD has posted strong gains on Tuesday, as the pair has climbed to the mid-0.93 range. The Aussie got a lift as the RBA held the benchmark interest rate at 2.50%. On the release front, Australian Trade Balance slipped to a three-month low and missed expectations. In the US, there are only three releases on the schedule, highlighted […]

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The 4/23 and 4/24 sessions had two key movers for the AUD/NZD. The first was the AUS inflation data for Q1, which was not low enough to be of concern (CPI growth was 2.9% on the year and 0.6% in Q1). However, trader’s used it to cool off the hot AUD, which translated into a break below a rising trendline in the AUD/NZD, as you can see in the 4H chart. The RBNZ raised the key interest rate as expected from 2.75% to 3.0%, and was hawkish on the prospect of continuing inflationary pressure…

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CPI growth in Australia came in at 0.6% for Q1. The previous quarter’s reading was 0.8%, and so was economists’ forecast for Q1. CPI in Q1 from a year earlier grew 2.9%, missing the 3.2% forecast. The lower than expected inflation data might present a challenge for the RBA to raise rates and thus hampered AUD-strength. The 2.9% rate on the year is within the 2%-3% target for the RBA, so this data should not seriously prevent a rate hike, but in the short-term…

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The RBA announced that it will hold the overnight cash rate at the record low of 2.5%. Economists had mostly expected a rate-hold. Glenn Stevens statement pointed out both improvements, and continuing weakness in the economy: The AUD/USD has been bullish going into the release, though it slowed down ahead of it. The 4H chart below shows a bullish market that was trading at a projected channel resistance ahead of the RBA statement. After the statement…

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