RBA’s shock price hike boosted AUD throughout the board as we speak!

Will as we speak’s Eurozone PMIs make or break EUR/AUD’s intraday downswing?

Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/JPY hanging out close to the highest of a channel forward of RBA’s coverage choice. Make sure to take a look at if it’s nonetheless a very good play!

And now for the headlines that rocked the markets within the final buying and selling periods:

Recent Market Headlines & Financial Information:

Canada’s S&P manufacturing PMI improved from 48.6 to expansionary 50.2 as anticipated in April, however underlying information places restoration on shaky floor.

U.S. S&P manufacturing PMI revised barely decrease from the preliminary 50.4 estimates to 50.2 in April after a 49.2 studying in March.

U.S. ISM manufacturing PMI positive aspects momentum, up from 46.3 to 47.1, however marked its sixth consecutive month of contraction in April.

Treasury Secretary Yellen says the U.S. dangers defaulting as quickly as June 1 with no debt ceiling enhance.

POTUS Biden invited high congressional leaders for a Might 9 assembly on the debt restrict

British Retail Consortium: U.Okay. store worth inflation cooled from a document excessive of 8.9% to eight.8% in April as heavy discounting on clothes and furnishings pulled the index decrease.

Japan’s financial base sinks additional, down 1.7% y/y vs. -1.3% anticipated in April

RBA shocked markets with a 25bps price hike to three.85%, citing “too excessive” inflation that can take “a few years” earlier than returning to the goal vary.

RBA famous that some additional tightening “could also be required” to return inflation to focus on “in an inexpensive timeframe”

Germany’s retail gross sales down by one other 2.4% m/m in March vs. downwardly revised -0.3% in February, 0.4% anticipated

Nationwide: U.Okay.’s home costs rose by 0.5% m/m in April, the primary enhance in eight months. Annual progress improved from -3.1% to -2.7%.

Value Motion Information

Overlay of AUD Pairs 15-min

AUD was buying and selling inside its U.S. session ranges when the Reserve Financial institution of Australia (RBA) shocked markets with an rate of interest hike.

Turned out, the RBA thought {that a} 7% inflation continues to be “too excessive” and that it will take YEARS for shopper costs to fall to the central financial institution’s goal vary at its present price.

The shock tightening bumped AUD by greater than 1.0% greater than its main counterparts.

Eurozone’s flash CPI at 9:00 am GMT
RBA Gov. Lowe is to offer a speech at 11:20 am GMT
U.S. JOLTS job openings at 2:00 pm GMT
U.S. manufacturing unit orders at 2:00 pm GMT
New Zealand’s quarterly employment numbers at 10:45 pm GMT
RBNZ Gov. Orr is to offer a speech at 11:00 pm GMT
Australia’s retail gross sales at 1:30 am GMT (Might 3)

Use our new Foreign money Warmth Map to rapidly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️

EUR/AUD 15-Minute Foreign exchange Chart by TradingView

A shock RBA price hike earlier as we speak boosted AUD throughout the board and dragged EUR/AUD to the 1.6380 degree that’s close to the S2 of the 15-minute Normal Pivot Factors.

Apparently, as we speak’s downswing to 1.6380 already represents the pair’s full every day ATR transfer.

Not solely that, however EUR/AUD’s present consolidation additionally strains up with a serious resistance space within the first half of April.

Are we an intraday pullback within the making?

A bounce from the 1.6400 psychological degree might push EUR/AUD again to the S1 (1.6475) ranges.

But when as we speak’s Eurozone PMIs are available worse than anticipated, then EUR/AUD’s promoting might achieve one other momentum, this time in the direction of the S3 ranges close to 1.6300.