Foreign exchange merchants are in for a busy couple of buying and selling periods because the Fed is predicted to boost charges whereas Canada, Australia, and New Zealand are on account of print top-tier financial releases.
Will right now’s occasions carry AUD/USD firmly again to its weeks-long uptrend?
Earlier than shifting on, ICYMI, yesterday’s watchlist checked out CAD/JPY’s retracement alternatives after busting above a resistance zone. Remember to take a look at if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Recent Market Headlines & Financial Information:
German ZEW Financial Sentiment Index slumps from 54.3 to -39.3 in March
Canada housing begins rise 8% to 247,256 in February
US producer costs climbed 10% from a 12 months in the past in February, month-to-month enhance at 0.8% after 1.0% uptick in January
New York manufacturing unexpectedly shrinks from 3.1 to -11.8, the bottom since 2020
Lagarde: ECB received’t increase charges till a while after internet bond shopping for ends
AU Westpac main index rises from -0.5% to -0.25% in February
Japan posts bigger-than-expected commerce hole of 1.03T JPY as vitality imports leap in February
Fitch: Russia to ‘default’ if greenback coupons paid in rubles due right now
U.S. officers count on POTUS Biden to announce $1 billion in army assist to Ukraine
Zelensky says Ukrainian and Russian positions changing into extra ‘sensible’
U.Ok.’s Boris Johnson visits Saudi Arabia and UAE, in search of extra oil output
China share surge boosts Asian fairness gauges forward of Fed
Canada’s inflation studies at 12:30 pm GMT
U.S. retail gross sales knowledge at 12:30 pm GMT
U.S. EIA crude oil inventories at 2:30 pm GMT
FOMC assertion at 6:00 pm GMT
Fed Chairman Powell’s presser at 6:30 pm GMT
NZ quarterly GDP at 9:45 pm GMT
AU employment numbers at 12:30 am GMT (Mar 17)
RBA’s bulletin at 12:30 am GMT (Mar 17)
Use our new Forex Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
What to Watch: AUD/USD
The largest market mover within the subsequent couple of hours would be the FOMC assertion the place members are anticipated to boost rates of interest by a minimum of 25 foundation factors.
Markets can even take note of the central financial institution’s inflation, development, and rate of interest expectations to see if Fed members will plan to step up their fee hikes from 3 again in December to 4 or 5 for all of 2022.
After all, the Fed received’t be sunshine and daisies about its fee hike. Do not forget that members are pressured to boost charges primarily on account of excessive inflation not being as transitory as they anticipated.
With Ukraine’s struggle and the specter of one other spike in coronavirus circumstances, Fed Chairman Powell and his staff will wish to be much less hawkish of their statements.
As you may see, AUD is sporting a Double Backside sample on the 4-hour time-frame close to the 200 SMA. Extra importantly, the sample’s “neckline” strains up with a development line assist that’s been round since early February.
Merchants are already in a risk-taking temper after Chinese language authorities have pledged to spice up the financial system amidst rising coronavirus circumstances and contemporary lockdown measures.
If Powell convinces markets of its cautious stance and right now’s FOMC occasion conjures up a buy-the-rumor, sell-the-dollar atmosphere, then AUD/USD may break above its consolidation.
Australia’s labor market knowledge – scheduled within the Asian session – can also be anticipated to print one other set of upbeat numbers. If the anti-dollar, pro-risk theme extends to Asian session buying and selling, then we may see AUD/USD return to its swing-term uptrend.