RBA unchanged, positive risk sentiment and equities rising

Frank Walbaum FX Strategies.Asia

Important news for the day

Tue, 24th, 06:30 CET AU RBA interest rate decision.

Another central bank week

The RBA has let interest rates unchanged as previously expected, which caused the AUD to rally even further. Based on long term trends, though, the currency might start to find a peak causing a correction for now. On the other hand the Chinese government has added further stimulus for their economy, which also causes stock markets to rise further. More trust into the economy seems to support the sentiment for investors for now. The target for growth this year has been set to 5% by authorities.

Market talk

The oil market seems to follow the recent positive economic sentiment. Upside potential and a breakout of the USD 72.50 technical resistance zone might cause prices to rise further. The weakness of the Dollar seems to return for now, which also supports the risk sentiment. Gold prices have moved higher yesterday, whereas Silver seems to lag behind due to economic demand. Bitcoin is currently rising slightly whereas the price of ETH has finally broken above the 50- moving average based on the daily chart. Further upside momentum might follow.

Tendencies in the markets

Equities positive, USD weaker, cryptos positive, oil positive, Silver correcting, Gold sideways, JPY weaker

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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