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Forex: EUR/AUD closes higher ahead of RBA Rate Decision

FXstreet.com (Barcelona) - The EUR/AUD closed the session up 52 pips at 1.2749. At one point the pair traded as high as 1.2814 but was again rejected at higher levels for the second day in a row. It will be a busy session of economic releases with AUD House Price Index and Trade balance both due out at 1:30GMT. However, volatility will most likely really pick up when the RBA Rate Decision is released at 4:30GMT.

According to analysts at FX Briefs, “RBA decision is 50/50 on whether they cut rates today. Economists surveyed are mostly looking for the RBA to be unchanged, whilst the futures market expects a 55% chance that the rate will be cut by 25bp. The market seems to be positioned short going into this meeting, either expecting a cut today or looking for.”

The FXStreet.com Trend Index remains in Strongly Bullish set up on the daily chart, while the OB/OS Index reads Neutral. Short term moving averages remain in bullish set up, with price above both the short term 9 and 20dma’s. Initial support sits at 1.2716 (the 9dma), followed by 1.2597 (the 20dma), First resistance is at 1.2814 (previous day high) followed by 1.2888 (high price from May 2nd).

Commodities Brief: Precious metals finish lower after narrow range day

It was a quiet day across the majority of markets as market participants being to re-assess all the economic data from the previous week. Most commodities traded in a narrow range, as gold closed down 0.13% at 1468.70, while silver closed down 0.70% at 23.98. On a final note, the one bright spot was oil which added to grains from last week and closed up 0.30% at 95.83 (although well of the highs set early in the Asia session at 97.17).
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