The Aussie Dollar soared after the RBA unexpectedly raised interest rates for the first time in 6 months

<p>  AUD/USD Range: 0.9867 – 0.9995 Support: 0.9820 Resistance: 1.0000 The Aussie Dollar soared after the RBA unexpectedly raised interest rates for the first time in 6 months, […]</p>

 

AUDUSD

AUD/USD

Range: 0.9867 – 0.9995
Support: 0.9820
Resistance: 1.0000
The Aussie Dollar soared after the RBA unexpectedly raised interest rates for the first time in 6 months, and hinted that further tightening is not far away. RBA governor Glen Stevens said the economy was now subject to a “large expansionary shock” on the back of the highest terms of trade since the early 1950s. Stevens concluded that the “risk of inflation rising over the medium (has) shifted to the point where an early, modest tightening of monetary policy was prudent”. His rhetoric suggested that there will be more to come in the near future.

 

EURUSD

EUR/USD

Range: 1.3882 – 1.3946
Support: 1.3865
Resistance: 1.4010
Beside the movements in the Aussie crosses, after the unexpected rate increase in Australia, the FX markets seem relatively quiet this morning. The market seems to be preparing itself for risk events such as US midterm legislation election, the Fed monetary policy meeting and the NFP’s taking place this week. EURUSD was dragged 30 pips higher on the jump in AUDUSD, currently trading around the 1.3935 area, slightly above its opening price. The final revision of German and Euro zone manufacturing PMI are due just before 9am this morning.

 

GBPUSD

GBP/USD

Range: 1.6041 – 1.6076
Support: 1.6005
Resistance: 1.6105
Cable seems to be stuck! The currency has appreciated against its European and American neighbours, but the UK’s financial and economic health are under considerable scrutiny. The speculation surrounding policy is keeping the currency anchored. With the BoE expected to take a neutral outlook on future monetary policy, this could be considered relatively bullish given the very dovish outlook of the US.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.