The Forex Market Wrap is here!
Watch the video to learn what key levels have been hit this week!
FOREX Market Wrap Analysis
This week saw inflation rise yet again this time in Australia, the CPI numbers came in at 2.1% ahead of forecasts. This could force the RBA to hike rates in their next meeting and despite this positive data the Australian dollar continued to fall. The USD rallied significantly this week as fundamentals remain bullish for the currency. Investors were looking to the Bank of Japan to address the current Yen weakness however the central bank remained dovish which saw the Yen sell off further.
The USD Index reached major highs this week as the currency remains strong ahead of the Federal Reserves May hike announcement. We usually see a currency gain strength when a central bank announces a rate hike is to come so seeing the USD Index reach the highs wasn’t a surprise, but will this continue? The last two times the price reached these highs we have seen a rejection and a reversal to the trend. Circumstances may be different this time with the rate at which inflation is rising but we could still see a minor correction form here.
The AUDUSD price continued to fall this week despite the high CPI numbers. This was largely due to the USD gaining strength and the risk off market environment. The price remained bearish this week as the price heads back towards the key 0.7000 level. If the price reaches this level we could see a short term bounce.
The price of USDCAD remains in a range this week as the two currencies battle for strength. If the USD Index is going to reject the major highs we could see a reversal form in the market of USDCAD at the range highs. The price needs to retest the range highs before looking for this opportunity on a change of trend on the 4hr time frame.
The New Zealand Dollar weakness continued this week and the NZDUSD broke through major weekly swing lows offering bearish opportunities on the lower timeframes. This sentiment could continue in the market and if the 4hr continues to form lower highs we can look for short trading opportunities.
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