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The Reserve Bank of Australia has left its Official Cash Rate unchanged at 3.60%, as widely expected.
- The Reserve Bank of Australia's policy meeting a few hours ago produced no major surprises, with the Bank leaving its Official Cash Rate unchanged at 3.60%. However, the Bank formally ruled out further rate cuts within the current cycle, which was already expected but might give the Aussie a very small tailwind - the Aussie is higher towards the end of today's Asian session.
- Precious metals continue to look bullish, led upwards by Silver, which briefly traded at a new all-time high yesterday above $59.40. Trend and momentum traders will want to be long of Silver and might be thinking about getting long of Gold too, although this is some way off its recent record high price.
- Stock markets have sold off a bit over the past day, but these retracements look minor - we remain in a bull market so its better to look to the long side, especially in American indices with stellar track records such as the S&P 500 Index and the NASDAQ 100 Index. I am waiting for a new record high closing price before entering any new long trades.
- The US FOMC will be meeting tomorrow. According to the CME FedWatch tool, markets are currently pricing in an 89% chance of a 0.25% rate cut at the policy meeting Wednesday. Markets will increasingly look towards the Fed's forecasts for 2026, with some analysts worried that next year's pace of cuts will be not be fast enough.
- In the Forex market, since the Tokyo open the Australian Dollar has been the strongest major currency while the Japanese Yen has been the weakest, although the numbers are relatively small to mean much. The USD/MXN currency pair is testing very long-term lows. Many Forex brokers pay positive swap on short positions, which could make this an attractive carry trade. Many trend traders will still be long of the USD/JPY currency pair, which got a bullish bounce this week after printing a large engulfing candlestick - the price is now above ¥156.00 and I am still long here.
- Today there will two high impact economic data releases, both in the USA:
- ADP Weekly Employment Change
- JOLTS Job Openings