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Forex: AUD/JPY still range bound after Aussie CPI data disappoints

FXstreet.com (Barcelona) - The AUD/JPY is currently trading down 48 pips at 101.73. Earlier in the session, the pair had traded as high as 102.37 before the Aussie CPI (yoy) was released at 2.5% actual vs. 2.8% forecast. Over the last 5 sessions, the pair has been consolidating in a wide range between 99.50 and 103.00

According to Eamonn Sheridan of Forex Live, “The real quick recap is very low inflation pressure in Australia - there is no inflation-related reason apparent for the RBA not to cut rates, should they so wish. Given the weakening growth in China the prospects for a near-term rate cut (May or June) have increased somewhat. the RBA meets next on May 7.”

The FXStreet.com Trend Index on 1 hour time frame remains slightly bearish, while the OB/OS reads neutral. Looking at the RSI (14) on the 1 hour chart, the momentum oscillator is struggling to get above the 60 resistance level which is something to keep an eye as the session progresses. Should the RSI (14) continue to have trouble up here, it could be a signal that the 60-20 bearish range will continue ultimately leads to further consolidation or lower prices.

Forex: NZD/USD eases below 0.8450

NZD/USD has retraced all the way from the fresh session top at 0.8463 following RBNZ rate statement to where it was before the release, and now trades at 0.8430 last. The pair has also eased a bit after Australia CPI figures came in lower than expected, though it is still holding above session lows at 0.8411.
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Forex Flash: China’s economy less about exports and more about domestic services - Rabobank

“The Flash estimate of China’s HSBC-sponsored manufacturing index fell in April to 50.5. The index averaged 50.1 through 4Q 2012 and then improved to average 51.3 in 1Q this year,” Rabobank International Financial Markets Research team noted.
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