Markets Steady as Traders Await Insights from RBA's Meeting Minutes

Action Insight Mid-Day Report 9-18-23

Markets Steady as Traders Await Insights from RBA's Meeting Minutes

In today's rather subdued trading sessions, most of the movements in the financial markets are limited. European indexes are somewhat in red, albeit with contained losses for the time being. Meanwhile, yields in US and Europe have experienced a minor increase. In the currency sphere, Sterling is mildly weaker, closely followed by Dollar and Euro. Conversely, Canadian Dollar is showing strength, with Yen and Kiwi Dollar tailing not far behind.

As we look forward to the upcoming Asian session, all eyes are on Australian Dollar, gearing up to be the focal point. This heightened attention comes as RBA plans to publish the minutes of its meeting held on September 5. Remarkably, the meeting marked the third consecutive time RBA chose to maintain the status quo on interest rate.

The financial streets are buzzing with speculation as market participants are split in their expectations; while RBA hasn't definitively closed the door on another rate hike, a segment of the market conjectures that the interest rates have attained their peak. The upcoming minutes are set to offer a deep well of insights, providing a closer look at the discussions held during the meeting — mainly focusing on whether there was serious contemplation on a rate hike, thereby presenting a clearer picture of the likelihood of such a move later.

On the technical front, AUD/NZD is seen oscillating in a triangular consolidation pattern since dipping to 1.0721. This pattern hints that the decline from 1.1050 has yet to reach its end. A set of RBA minutes that leans more towards the dovish end of the spectrum could potentially knock down the cross from 1.0923 resistance. Further break of 1.0811 support will argue that AUD/NZD is ready to fall through 1.0721 support towards 1.0056. However, firm break of 1.0923 resistance will dampen this view, and target 1.1050/1.1085 resistance zone instead.

In Europe, at the time of writing, FTSE is down -0.46%. DAX is down -0.82%. CAC is down -1.20%. Germany 10-year yield is up 0.0273 at 2.707, above 2.7 handle. Earlier in Asia, Japan was on holiday. Hong Kong HSI dropped -1.39%. China Shanghai SSE rose 0.26%. Singapore Strait Times dropped -0.53%.

Full Report Here

Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2359; (P) 1.2402; (R1) 1.2426; More...

No change in GBP/USD's outlook as fall from 1.3141 is extending today. Intraday bias remains on the downside for 100% projection of 1.3141 to 1.2618 from 1.2799 at 1.2276. On the upside, though, firm break of 1.2547 resistance will now indicate short term bottoming, and bring stronger rebound.

Full Report Here

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

Recommended Readings

Bank of England Preview: Peak Approaching – GBP Headwinds to Set In

Fed Set to Skip a September Hike, But Will It Flag One for November?

AUD/USD Eyes RBA Minutes

Bitcoin Has Not Yet Reached Resistance

USD/JPY: Bulls Hold Grip Ahead of Fed and BOJ Policy Meetings

Gold Challenges Crucial Downward Sloping Trendline

US 500 Cash Index Prepares for Wednesday's Event

WTI Oil: Crude Oil Price Continues to Rise on Tighter Supply and Brightening Demand Outlook

GBP/JPY Can Be Eyeing 190 Area

Canadian Dollar Strengthens Ahead of Inflation News

EUR/JPY Technical: Bulls May Have Reached a Key Bearish Reversal Zone

GBP/USD Extends Losses While EUR/GBP Gains Strength

Fundamental Analysis | Technical Analysis
In-depth Reports
alt
ECB Review: Confirmed - A Final Rate Hike, But Restrictive Policies Not Over
alt
Swiss Franc Shines Bright, But Will SNB Clip Its Wings?
alt
September Flashlight for the FOMC Blackout Period
alt
With Clouds Gathering Over the UK Economy, What's Next for Pound?
Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
22:30 NZD Business NZ PSI Aug 47.1 47.8 48
23:01 GBP Rightmove House Price Index M/M Sep 0.40% -1.90%
12:15 CAD Housing Starts Aug 253K 257K 255K
12:30 CAD Industrial Product Price M/M Aug 1.30% 0.50% 0.40%
12:30 CAD Raw Material Price Index Aug 3.00% 3.80% 3.50%
14:00 USD NAHB Housing Market Index Sep 50 50