Nothing to see here at the moment, back to the W open and shouldn't drift too far away until the first key data release of the week.
We are about to enter some high volatility starting in 9 hours with inflation data, followed up by the Fed. Not to mention the Weekly/Monthly close followed closely by the all important RBA. For now:
Inflation
Expecting poor inflation data with results skewed by rapidly falling petrol prices as we saw in the NZD last week. Wouldn't expect to see a knee jerk reaction beyond 692x. Any positive result (not expected) should be capped at 707x. We can play some ping pong between these levels until the Fed.
Fed
Expecting a dovish/slightly dovish Fed with plenty of turmoil since the last meeting in December. Slightly dovish/dovish fed should open 707x with an extension to 717x, regardless of inflation data. A hawkish fed or even neutral (not expected) should have us retesting multi-year lows before the week/month close.
Mid term target remains 0.639x
We are about to enter some high volatility starting in 9 hours with inflation data, followed up by the Fed. Not to mention the Weekly/Monthly close followed closely by the all important RBA. For now:
Inflation
Expecting poor inflation data with results skewed by rapidly falling petrol prices as we saw in the NZD last week. Wouldn't expect to see a knee jerk reaction beyond 692x. Any positive result (not expected) should be capped at 707x. We can play some ping pong between these levels until the Fed.
Fed
Expecting a dovish/slightly dovish Fed with plenty of turmoil since the last meeting in December. Slightly dovish/dovish fed should open 707x with an extension to 717x, regardless of inflation data. A hawkish fed or even neutral (not expected) should have us retesting multi-year lows before the week/month close.
Mid term target remains 0.639x