Weaker than anticipated Australian CPI put Aussie pairs on shaky floor immediately.

Will we see extra losses for AUD/NZD?

Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/JPY’s uptrend pullback on China’s stimulus rumors. Make sure to take a look at if it’s nonetheless play!

And now for the headlines that rocked the markets within the final buying and selling periods:

Recent Market Headlines & Financial Knowledge:

U.S. CB shopper confidence index improved from upgraded 110.1 in June to 117.0 in July to replicate stronger optimism vs. 112.1 forecast

Richmond manufacturing index slid from -7 to -9 as anticipated in July, indicating sharper tempo of trade contraction

Australian headline CPI slowed from 1.4% q/q to 0.8% vs. 1.0% anticipated, annual studying down from 5.6% to five.4% as anticipated

Japanese official famous that BOJ Governor Ueda believes long-term yields stay secure underneath yield curve management coverage

Worth Motion Information

Overlay of AUD Pairs 15-min Charts

After a bullish run within the earlier buying and selling periods, the Aussie bought off sharply throughout the board when the Land Down Beneath’s CPI readings had been launched throughout Asian market hours.

Each the headline studying and trimmed imply CPI got here in weaker than anticipated, dashing hopes of extra rate of interest hikes from the RBA. The Kiwi additionally tumbled in opposition to its counterparts upon seeing the information.

To this point, AUD is pulling again up in opposition to the U.S. greenback now that merchants are turning their consideration to the upcoming FOMC resolution.

U.S. new dwelling gross sales at 2:00 pm GMT
EIA crude oil inventories at 2:30 pm GMT
FOMC financial coverage assertion at 6:00 pm GMT
FOMC press convention at 6:30 pm GMT

Use our new Forex Warmth Map to shortly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️

AUD/NZD 15-min Foreign exchange Chart by TV

Take a look at this short-term double prime on AUD/NZD!

The pair is right down to its neckline close to S1 (1.0860) and a break beneath assist may set off a drop that’s the identical measurement because the formation or roughly 60 pips.

This needs to be sufficient to take the pair right down to the following ground at S2 (1.0810) or the 1.0800 main psychological mark.

If assist holds, alternatively, AUD/NZD may get better to the newest highs round 1.0920 or larger.

Bearish momentum from the downbeat Australian CPI launch may be sufficient to maintain a selloff, even till the FOMC resolution.

Then once more, the Kiwi may also be in for losses if danger aversion picks up strongly throughout the announcement.

In any case, simply ensure you account for the common AUD/NZD volatility of 65 pips per day when buying and selling this one!