- AUD/NZD is in consoldiation above a 23.6% Fibonacci support.
- RBA is in focus as the main highlight for the session ahead.
AUD/NZD rose 0.3% over the day to 1.0625 and is set up in a stationed around 0.10620 ahead of today’s main event in the Reserve Bank of Australia meeting.
The cross has been capped in recent sessions and met a 23.6% Fibonacci retracement in 1.0570 where it has based and consolidating since. The cross is pretty neutral to the current themes of risk-off considering both are risk-off currencies.
The US administration is embarking on an investigation into the origin of the virus. The US is seeking to prove that China withheld information which ultimately led to the global pandemic, in their view, albeit with it being unsubstantiated at this point in time.
However, there is no current evidence to suggest that coronavirus leaked from a Chinese research laboratory and the Guardian reported that their “sources insisted that a “15-page dossier” highlighted by the Australian Daily Telegraph which accused China of a deadly cover-up was not culled from intelligence from the Five Eyes network, an alliance between the UK, US, Australia, New Zealand and Canada.”
The Guardian ent onto write that the “British and other Five Eyes agencies do believe that Beijing has not necessarily been open about how coronavirus initially spread in Wuhan at the turn of the year. But they are nervous about getting involved in an escalating international situation.”
- Chart of the week: AUD/JPY looking ripe for a short
It’s RBA day
Meanwhile, all eyes turn to the RBA. policy rate announcement at 2:30pm Syd/12:30pm Sing/HK. “While the cash rate is expected to remain at the effective lower bound of 0.25%, the Board’s assessment of its yield curve control will be of interest to the market,” analysts at Westpac explained.
Governor Lowe should also provide an indication of the forecasts the RBA will publish in Friday’s quarterly Statement on Monetary Policy. Massive changes will be needed as the February forecasts were for a year of solid economic growth. Any concern over the rebound in $A since March would be notable.
For a full preview, see here: RBA Preview: Markets looking for forecasts, not action
AUD/NZD levels
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