Forex $1 MM Challenge - Trade #14 (6-18-19) Sold AUD/JPY
Australia’s central bank is likely to lower interest rates again to drive increased hiring and boost households’ confidence that inflation will return to target.
The Reserve Bank made the comment in minutes of its June 4 policy meeting, when it eased the cash rate to 1.25% in the first reduction in almost three years. The report was released in Sydney Tuesday.
“The July meeting is clearly live, but we marginally favor August for the next 25 basis-point cut because it coincides with the Statement on Monetary Policy,” said Gareth Aird, senior economist at Commonwealth Bank of Australia, referring to the RBA’s quarterly update of economic forecasts. “Back-to-back rate cuts may have a negative impact on household confidence.”
Commonwealth updated its RBA forecast earlier today and now sees two reductions -- in August and November -- to take the cash rate down to 0.75%.
Monthly Chart (Curve Time Frame) - monthly supply is at 88.500 and monthly demand is at 68.700.
Weekly Chart (Trend Time Frame) – the trend is down.
Daily Chart (Entry Time Frame) – the chart suggests to go short at the 8 hr supply at 74.800,
with a long term multi-year target at 60.000.
NOTE: if the trade goes in my favor, I plan to add onto the position.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
