Today i bring you a weekly analysis of the AUDUSD Market
The Federal Reserve looks almost certain to approve a 50- basis or half percentage, point rate hike at the conclusion of its May policy meeting on Wednesday . Its first rate hike of that size in over 20 years and announce the start of a reduction of their $9 trillion asset portfolio.
This will be a busy week filled with many major economic data releases. Monday ISM Manufacturing Report is expected to show factory activity posted a small rebound in April and Friday's nonfarm payroll report to show slower job growth. The April non-farm payroll headline number is expected to decrease from 431,000 in March to 390,000 and the unemployment rate is expected to remain steadt at 3.6%
Markets are heavily distorted in Asia this week due to a number of holidays. China is closed from Monday until Wednesday which means any negative developments surrounding COVID or other geopolitics would be reflected in other regional markets such as Australia. Australia could be a correlation trade for China PMI releases and it could be a lively start to trading on Monday. Poor China data could see AUD pressured and a decent data could have a positive impact.
Most focus would be on Tuesday's RBA rate decision. A 50% hike is fully priced by the markets and the Ukraine Russian war is weighing on AUDUSD heavily. If the RBA does not hike AUDUSD could fall sharply in the short term. If the RBA hikes and adjusts its guidance to be more hawkish AUDUSD could potentially see a big move higher.
This is an article, not financial advice , always do your own research.
If you have any questions, you can write it in the comments below and i will answer thwm
And please don't forget to support this idea with your like and comment. Thank You.
The Federal Reserve looks almost certain to approve a 50- basis or half percentage, point rate hike at the conclusion of its May policy meeting on Wednesday . Its first rate hike of that size in over 20 years and announce the start of a reduction of their $9 trillion asset portfolio.
This will be a busy week filled with many major economic data releases. Monday ISM Manufacturing Report is expected to show factory activity posted a small rebound in April and Friday's nonfarm payroll report to show slower job growth. The April non-farm payroll headline number is expected to decrease from 431,000 in March to 390,000 and the unemployment rate is expected to remain steadt at 3.6%
Markets are heavily distorted in Asia this week due to a number of holidays. China is closed from Monday until Wednesday which means any negative developments surrounding COVID or other geopolitics would be reflected in other regional markets such as Australia. Australia could be a correlation trade for China PMI releases and it could be a lively start to trading on Monday. Poor China data could see AUD pressured and a decent data could have a positive impact.
Most focus would be on Tuesday's RBA rate decision. A 50% hike is fully priced by the markets and the Ukraine Russian war is weighing on AUDUSD heavily. If the RBA does not hike AUDUSD could fall sharply in the short term. If the RBA hikes and adjusts its guidance to be more hawkish AUDUSD could potentially see a big move higher.
This is an article, not financial advice , always do your own research.
If you have any questions, you can write it in the comments below and i will answer thwm
And please don't forget to support this idea with your like and comment. Thank You.
