Блог Jignesh

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RBA Surprises Markets and Cuts Rates

The RBA today cut rates to 1.75%
The forecast for today was at 2.00%, though some economists did project this could occur at the meeting today.
The concerns of the bank, remain with the current exchange rate. Perhaps realizing the USD is under pressure, taking some preemptive measures to control the exchange rate to prevent it from getting too bullish.
Commodity prices have been rising, which helps Australia, though perhaps a bit too early to tell. The Employment market in the past showed some u…
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AUD Unemployment Up Next

All eyes are on the Australian Dollar as it is set to release it's Unemployment Rate later in the Asian Session.
Unlike it's counterpart New Zealand, the labor market has faired better than expectations. Earlier this year the RBA had commented that they expected this number to peak at 6.5% - a number which is yet to be seen.
As well, a few weeks back, the RBA released a monetary policy statement that seemed rather hawkish. No major concerns were mentioned. Essentially the view was that they were…
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RBA Statement Overview and Interpretation

In Yesterday's blog post I wrote about a technical short setup ahead of the RBA statement. The result turned out to be bullish.
I have taken some time to highlight some key points from my interpretation of the statement. It is included in the image below.
The main impression left from the statement was quite positive. The RBA addressed inflation, as expected as it is a global concern, however they have realistic expectations in regards to the low levels of inflation and expect that may remain so…
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AUDUSD Faces Resistance ahead of Cash Rate & Statement

The RBA is due to release a rate decision, as well as a rate statement early in the Asian session.
The rate is expected to come in unchanged, however speculation favors the downside for the AUD as the RBA has become notorious for it's attempt to jawbone the currency lower.
Looking at AUDUSD, the pair is struggling at 4H Resistance coming in at 0.7147
On the smaller time frames, we can even see a small channel broken, and price retesting. A rejection from current levels can provide a trade setup …
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Central Banks looking to cause some moves this week

This coming week we will have some speeches from several of the central banks.
Early in the week RBA Gov Stevens is up, and later we have the Fed's Yellen and ECB Draghi to finish off the week.
The overall expectation for the week does not call for much, but I will be looking for any type of surprise announcement that can shake out the market.
From the RBA - I have blogged about this before. We may see a shift in monetary policy, it all depends on which area they decide to focus on. In the last …
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Bimlesh avatar
Bimlesh 18 Авг.

Frankly speaking, I understand nothing about fundamentals, actually haven't even tried to know what they mean.. and I never cared to know in detail about the ECB or the central bank or RBA... or how has inflation or interest rate effected.........................just I understand the end result, whether it is going to have movement or not and would be best if I understand which side...  :)

Jignesh avatar
Jignesh 18 Авг.

I lean more to technicals myself as well.  But I think it is worthwhile reading what the central banks have to say, it often gives good clues for the direction, and then use technicals for the trades.

Bimlesh avatar
Bimlesh 18 Авг.

its worthwhile but Its very difficult for me to understand.. have tried few times trying to understand the fundamentals....

Jignesh avatar
Jignesh 18 Авг.

I'll try to write a blog post this week to provide some insight on how I use fundamentals personally to trade the markets if that helps

Bimlesh avatar
Bimlesh 18 Авг.

personally I thank you in advance for that.. that would really be of gr8 help

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RBA - Hawkish or Dovish?

The RBA has up to recently deployed tactics such as verbal intervention to bring down to the AUD exchange rate, Their goal is to bring down the rate in order to stimulate their economy.
Recently however, the RBA posted an inflation rate of 3%, The highest it has been in 2 and a half years. At this point, their objectives are diverging and they will have to make a decision which way to focus. If they focus on inflation, they would be hinting at raising rates, which of course is bullish for the cu…
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Likerty avatar
Likerty 5 Авг.

None of the mentioned above:)))))))

Jignesh avatar
Jignesh 5 Авг.

What's your take?

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