Buying AUDNZD – Forex Trading Tips

Today we like buying AUDNZD after the RBA rate statement. A more aggressive approach can be to enter at market targeting 1.1400 with a stop at 1.0995. A more conservative approach will be to wait for a pullback to the 1.1150 – 1.1100 zone where we see multiple confluences of support.

Current Market Sentiment:

In yesterday’s NY session consumer spending rose as expected 0.2 percent in June, down from a revised spike of 0.7 percent in May. Personal spending also came in on target at 0.2%. The manufacturing index slipped 0.8 tenths in July to a lower than expected 52.7 to indicate slowing monthly activity for ISM’s sample. The USD (Index) traded flat for the session.

During Asia, Australia’s June retails sales printed better than expected at 0.7% following an increase of 0.4% in May. The June trade balance also came in slightly better than expectations showing a deficit of A$2.93 billion, however this has marked the 15th consecutive month that the trade balance has been in deficit. With that said the big event for the session was the RBA rate decision and statement. As expected the central bank held the rate steady at 2.00%,where it has been since May. With no rate change the market focus is on the degree of easing bias in the statement, which suggests the RBA will remain on hold for the foreseeable future. Also of note, RBA Governor Glenn Stevens changed the bank’s rhetoric about the currency exchange rate, saying now the lower AUD is adjusting to weaker commodity prices, as opposed to his prior comments that further falls were both likely and necessary.

The AUD has rallied strongly across the board.

Looking ahead today the London calendar is on the light side with the Spanish Unemployment Change and the UK Construction PMI. Take a look at my weekly Forex news event’s overview here in order to recap those particular events.

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