RBA Interest Rate At Record Low

The Reserve Bank of Australia (RBA) has kept its official cash rate on hold in September at its record low of 1.5 per cent for the 13th consecutive month, amid growing signs of housing slowdown. In his statement, RBA Governor Philip Lowe said that conditions in the housing market continue to slow down around the country. Housing prices have been rising rapidly in some markets, while in some, prices are declining; and this has caused concern for policy makers. The Australian dollar held gains in Asia on Tuesday’s morning trade after the central bank announced its decision.

source:ABC Online, Olga Kashubin / Shutterstock.com

Australia will be releasing its second quarter GDP tomorrow at 01:30 GMT and this could further impact the trend of the Aussie on the foreign exchange market. U.K. releases its Services Purchasing Managers Index (PMI) for the month of August at 08:00 GMT and investors are advised to follow this clearly as this report provides details on current business conditions. China released its Caixin PMI earlier today, the report reveals the services sector grew at a faster pace in three months. This report led Asian indices to trade on a mixed note on Tuesday.

The U.S. Ambassador to the United Nations Nikki Haley said Monday that the North Korean leader is “begging for war” with his latest powerful nuclear bomb test. She thus urged the UN Security Council to adopt strongest sanctions measures possible to stop Pyongyang’s nuclear program. Meanwhile, the Caribbean islands, Florida brace for fierce Hurricane Irma, just after residents in Texas reeling from the effects of Hurricane Harvey. Storm Harvey impacted several assets of the global markets, including crude oil.

Technical Analysis

UKOIL

UKOIL

The international benchmark, brent crude futures gained heights as from 08:00 GMT in Monday’s session to reach a high level of $52.71 a barrel by 14:00 GMT. It immediately started dropping gains from the very next hour and ended its session at 17:00 GMT. Crude oil is seen trading mixed in Asia, following the U.S. holiday overnight and Harvey impact remains on the market. The commodity could fluctuate further through the rest of today.

EUR/USD

EUR/USD

The currency pair gained strength in yesterday’s early trade as from 04:00 GMT, pulled by momentary jumps to reach the 1.19186 by 08:00 GMT. The EUR/USD pair did not gain much as the holiday in the U.S. led to low liquidity, and it is seen fluctuating today. According to the Ichimoku Cloud indicator, the asset will experience a change in trend around 08:00 GMT, consider trading within similar timeframe.

AUD/USD

AUD/USD

A day before the release of the RBA interest rate decision, the AUD/USD pair traded with much volatility on the forex market. It started tumbling as from 15:00 GMT in yesterday’s session and reached a record low of $0.79409 by 20:00 GMT. It successfully reached the 0.79783 around 01:00 GMT today as it gained 0.2 percent, but started dropping value from the very next hour. It is expected to fluctuate through today, use the Classic Binary Options.

Things to watch on the market

Tip 1

Consider trading on currency pairs such as the AUD/USD, EUR/AUD and AUD/JPY; along with the ASX 200 index as these could alter trends through the day.

 

Tip 2

Pertaining to events due today, it is advisable to trade on the GBP/USD, EUR/GBP, AUD/USD, FTSE 100, ASX 200.

 

Tip 3

The U.S. dollar, the Kospi index and crude futures should be closely analysed before investing.