RBA’s shock charge hike boosted AUD throughout the board at present!
Will at present’s Eurozone PMIs make or break EUR/AUD’s intraday downswing?
Earlier than shifting on, ICYMI, yesterday’s watchlist checked out AUD/JPY hanging out close to the highest of a channel forward of RBA’s coverage resolution. You’ll want to try if it’s nonetheless a superb play!
And now for the headlines that rocked the markets within the final buying and selling classes:
Recent Market Headlines & Financial Information:
Canada’s S&P manufacturing PMI improved from 48.6 to expansionary 50.2 as anticipated in April, however underlying knowledge places restoration on shaky floor.
U.S. S&P manufacturing PMI revised barely decrease from the preliminary 50.4 estimates to 50.2 in April after a 49.2 studying in March.
U.S. ISM manufacturing PMI positive factors momentum, up from 46.3 to 47.1, however marked its sixth consecutive month of contraction in April.
Treasury Secretary Yellen says the U.S. dangers defaulting as quickly as June 1 with out a debt ceiling enhance.
POTUS Biden invited high congressional leaders for a Could 9 assembly on the debt restrict
British Retail Consortium: U.Ok. store value inflation cooled from a report excessive of 8.9% to eight.8% in April as heavy discounting on clothes and furnishings pulled the index decrease.
Japan’s financial base sinks additional, down 1.7% y/y vs. -1.3% anticipated in April
RBA shocked markets with a 25bps charge hike to three.85%, citing “too excessive” inflation that can take “a few years” earlier than returning to the goal vary.
RBA famous that some additional tightening “could also be required” to return inflation to focus on “in an affordable timeframe”
Germany’s retail gross sales had been down by one other 2.4% m/m in March vs. downwardly revised -0.3% in February, 0.4% anticipated
Nationwide: U.Ok.’s home costs rose by 0.5% m/m in April, the primary enhance in eight months. Annual development improved from -3.1% to -2.7%.
Value Motion Information
Overlay of AUD Pairs 15-min
AUD was buying and selling inside its U.S. session ranges when the Reserve Financial institution of Australia (RBA) shocked markets with an rate of interest hike.
Turned out, the RBA thought {that a} 7% inflation continues to be “too excessive” and that it might take YEARS for client costs to fall to the central financial institution’s goal vary at its present charge.
The shock tightening bumped AUD by greater than 1.0% increased than its main counterparts.
Upcoming Potential Catalysts on the Financial Calendar:
Eurozone’s flash CPI at 9:00 am GMT
RBA Gov. Lowe is to present a speech at 11:20 am GMT
U.S. JOLTS job openings at 2:00 pm GMT
U.S. manufacturing facility orders at 2:00 pm GMT
New Zealand’s quarterly employment numbers at 10:45 pm GMT
RBNZ Gov. Orr is to present a speech at 11:00 pm GMT
Australia’s retail gross sales at 1:30 am GMT (Could 3)
Use our new Forex Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
EUR/AUD 15-Minute Foreign exchange Chart by TradingView
A shock RBA charge hike earlier at present boosted AUD throughout the board and dragged EUR/AUD to the 1.6380 stage that’s close to the S2 of the 15-minute Normal Pivot Factors.
Listed below are EUR/AUD’s every day pivot factors on MarketMilk™:
Apparently, at present’s downswing to 1.6380 already represents the pair’s full every day ATR transfer.
Not solely that, however EUR/AUD’s present consolidation additionally strains up with a serious resistance space within the first half of April.
Are we taking a look at an intraday pullback within the making?
A bounce from the 1.6400 psychological stage might push EUR/AUD again to the S1 (1.6475) ranges.
But when at present’s Eurozone PMIs are available in worse than anticipated, then EUR/AUD’s promoting might achieve one other momentum, this time in the direction of the S3 ranges close to 1.6300.