Cash Rate & RBA Rate Statement – 2nd June 2020
On 2nd June, the RBA will release the statement regarding their decision on interest rates. The RBA will also comment on the current economic conditions. The COVID-19 pandemic has greatly affected many countries and the economy has not been spared. In March, the RBA reduced the cash rate twice. It has also been announced that the cash rate would not be increased unless there is progress towards full employment. Therefore, in the upcoming RBA Rate Statement and Cash Rate data release, we do not expect any changes. That said, traders should look for hints in tone set by the RBA whether it is hawkish or dovish.
GDP Quarterly Report – 3rd June 2020
The GDP Quarterly Report is released roughly every 65 days. It represents the change in value of goods and services produced by the economy after inflation. In light of COVID-19, Australia’s net exports has suffered as businesses have been affected by the pandemic. We could potentially see a drop in exports. Traders should be aware of potential volatility when trading on this day.
AUDUSD Daily Chart
The AUDUSD has been making its recovery to the upside after the sharp drop in March 2020. We are looking for a shorting opportunity off a Bearish Bat pattern that completes at around 0.6879. The area is also a past area of support that could turn resistance. In the coming week or two, we expect a potential move that may push price closer to completion. However, with the upcoming news, traders should take caution when trading the pair.
AUDJPY Daily Chart
The AUDJPY daily chart also contains a Bearish Bat that completes around 74.75. Since price is currently at a past area of support, traders should wait for the pattern to complete before taking a short position. This would greatly increase the probability of a good trade with a good risk to reward ratio.
GBPAUD Daily Chart
The GBPAUD shows a recent move in favour of the AUD. There is a potential Bullish Bat pattern on the daily chart. However. Due to how steep of a downward move, traders should wait for confirmation before placing a buy order. The bias for the short term is to short GBPAUD. However, we expect some volatility due to the upcoming new events relating to the AUD.
Author: Eugene Voon