The Currency Trading Secrets Against Moves and Purchases From Central Banks.
The Bank of Australia is in focus today. A couple of hours ago, RBA held its rate meeting and decided to remain the rate at the same 4.1% level it was at a month before. Interest rates have been increased by 4% since May last year. The higher interest rates are working to establish a more sustainable balance between supply and demand in the damaged economy.
Holding the rate at the same level may provide some time to assess the impact of the increase on the Australian market. Also, the bank supposes the country passed the inflation peak, and no more hikes are needed to control prices. It’s the second country after Canada that is almost finished the hiking cycle. On the contrary, the US Fed repeats that more rate hikes will come.
Crude Oil touched the target we gave in one of the last reports, the $76.50 level. The sideways movement may be close to its end. However, another liquidity collection above $76.50 or below $71.00 may happen before the Brent oil starts a trend movement.
AUD/USD was down 460 points. The nearest level to watch at is the support of 0.6640
What focus needs to be considered in the future?
- US ISM Manufacturing PMI and Manufacturing prices were below expectations. The release caused a slight decline in EURUSD.
- Meta’s Instagram may launch “Threads,” the Twitter clone, tomorrow. Considering the constant changes in Twitter made by Elon Musk, Threads may have a high chance of survival.
- Bitcoin touched the resistance level of $31K yesterday. Simultaneously, a considerable selling volume appeared near this level. This is a bearish sign. We expect BTC to fall soon.
- The Turkish central bank said to stop supporting the lira exchange rate. However, today the bank resumed supporting actions. USD/TRY is up 216% over the last 18 months.