Aussie dollar jumps after RBA meeting

“The intelligent investor is a realist who sells to optimists and buys from pessimists.” - Benjamin Graham

 

 

HEADLINES

 

 

• RBA’s steadfast tapering plans wrongfoot analysts
• Gold falls as investors await U.S. jobs data
• Asian stocks slip as Delta spread spooks investors
• Bitcoin Underperforms Ether; Crypto Tax Ahead?
• Hawkish RBA decision to fuel the aussie to 0.7450 – Westpac

 

 

FOREX

 

 

RBA’s steadfast tapering plans wrongfoot analysts

 

The Reserve Bank of Australia today held firm on its plan announced last month to reduce bond buying, going against market expectations as lockdowns depress economic activity. The bank said in July it would drop weekly bond purchases to $4 billion a week from November, which analysts had tipped would be delayed or revised upward. The move has pushed up the Australian dollar toward US75¢, “and could jump further still”, the analysts said.

 

 

COMMODITIES

 

 

Gold falls as investors await U.S. jobs data

 

Gold prices were subdued on Tuesday, as the dollar held steady while investors avoided taking big positions ahead of the key U.S. non-farm payrolls data due later this week, although growing concerns over rising coronavirus cases limited decline. The dollar was on the back foot against the safe-haven yen and Swiss franc following soft U.S. manufacturing data and rising concerns about the coronavirus delta variant.

 

 

STOCKS

 

 

Asian stocks slip as Delta spread spooks investors

 

Asian stocks slipped on Tuesday, as the Delta coronavirus variant spread in key markets in the region and put Chinese authorities on high alert, rattling investor confidence. Trade in Asia faced a weaker lead from Wall Street after investors there considered the impact the increasing number global cases of Delta could have on global economic growth.

 

 

CRYPTO

 

 

Bitcoin Underperforms Ether; Crypto Tax Ahead?

 

Cryptocurrencies were mostly higher on Monday as bullish sentiment continues into August. Bitcoin underperformed other major cryptocurrencies and is down about 3% over the past 24 hours compared to a 2% rise in ether over the same period. Buyers remain active despite ongoing regulatory crackdowns in China.

Traders are also digesting the 58-page “Digital Asset Market Structure and Investor Protection Act, proposed by Rep. Don Beyer’s (D-Va.), seeking to create an exhaustive regulatory regime for digital assets. The U.S. Senate is also advancing a $1 trillion infrastructure bill with a crypto tax provision, which could be a source of market anxiety.

 

 

ANALYSIS

 

 

Hawkish RBA decision to fuel the aussie to 0.7450 – Westpac

 

“The RBA did not defer its taper decision though the statement did note that ‘the program will continue to be reviewed in light of economic conditions and the health situation’.”

“Not surprisingly, the AUD/USD pair has jumped sharply, and could jump further still. A push up to the top of the down channel at 0.7450 certainly seems quite possible – and a close above that level would point to a push towards 0.75.”

 

 

CHART

 

 

US dollar / Japanese yen – 4 hour Candlesticks

Source: GKFX Prime Metatrader 4

USD/JPY has broken below key support 109.30 and is now testing the 109 round number. The break lower suggests a new downtrend in the price. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

https://www.fxstreet.com/economic-calendar
https://www.afr.com/markets/equity-markets/asx-to-dip-ahead-of-rba-meeting-20210803-p58fat
https://www.fxstreet.com/news/aud-usd-hawkish-rba-decision-to-fuel-the-aussie-to-07450-westpac-202108030709
https://www.reuters.com/article/us-global-markets/asian-stocks-slip-as-delta-spread-spooks-investors-idUSKBN2F404Z
https://www.cnbc.com/2021/08/03/gold-markets-us-jobs-data-covid.html
https://www.coindesk.com/market-wrap-bitcoin-underperforms-ether-crypto-tax