CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

AUD smashed on RBA surprise in the absence of liquidity

Article By: ,  Financial Analyst
May 1, 2012 9:00 AM

EUR/USD
Range: 1.3234-1.3260
Support: 1.3100
Resistance: 1.3350

The euro continues to sit on the sidelines trading around 1.3250 with a stops seen either side of the weeks range thus far. (1.3208-1.3267). With Europe on holiday today I expect the short term fortunes of the single to be led by the cross market with signs the JPY strength is set to test the BOJ’s resolve as Japan celebrates it’s so called Golden Week. China’s manufacturing PMI data came in a touch below consensus at 53.3 from a reading of 53.1 in March with the market now awaiting the US ISM manufacturing index release at 3pm GMT today with the market forecast being 53.

GBP/USD
Range: 1.6216 – 1.6240
Support: 1.6150
Resistance: 1.6350

Sterling trades a little weaker ahead of the release of the UK manufacturing PMI data today at 9.30 which is expected to show a reading of 51.5 from 52.1 the previous month but again I stress the service PMI data released later this week is a far superior gauge for UK growth. For me GBP is looking a little tired with a failure to sustain a 1.6300 handle yesterday and the cross looking fatigued in the low 0.8100’s.
AUD/USD
Range: 1.0318-1.0430
Support: 1.0250
Resistance: 1.0450

The AUD dropped nearly a cent to 1.0330 following the Australian Central Banks decision to cut interest rates by 50 basis points to 3.75% with most forecasts being for a 25 basis point cut. The AUD cross market was also hit hard with AUD/JPY hitting a four month low of 82.24. The RBA justified the aggressive move by saying inflation would be lower than previously thought over the next 2 years but the market is concerned that such a bold move sends a signal that the RBA are seriously concerned about Chinese growth prospects.

 

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024