- This morning the Fed kept rates unchanged as it flagged a current ‘transition’ period. It shrugged off 0.7% first quarter growth and stated inflation will stabilise around 2% over the medium term. A June rate hike is widely expected, with a 75% probability.
- In breaking US news, it has been announced the House will vote on Thursday on the Republican Health-care bill.
- Some further selling in AUD/USD overnight. After a bounce to 0.755 on the RBA announcement on Tuesday, currently trading 0.742, a 130 pip sell off. Next support at the 0.7350 level.
- With the fed signalling further rate hikes, Gold sold off $15 to find support at the $1,237 level. Next supports at the $1,220 and $1,200 levels.
- EUR/USD still in a rising channel on the daily chart, in place since the start of 2017. Final round of French election voting this Sunday. Polls from May 1st suggest Macron 60.05%, leading Le Pen 40%. Its expected Macron will attract a wider range of second-round voters than Le Pen.
- USD/JPY continues to grind higher. Since mid-April the pair is up over 4%, while EUR/JPY approaches 123.50 resistance and a 7% gain since 17-April.
- The slide in oil continues, trading $47.82 as middle east geopolitical tensions stay quiet and production cuts are not sharp enough according to traders.
- Japanese market closed today and tomorrow due to a bank holiday.
Today’s Economic calendar (AEST)
- 11:30am Aussie Trade Balance
- 1:10pm RBA Gove Lowe Speaks
- 6:30pm UK Services PMI
- 10:30pm Canadian Trade Balance
- 10:30pm US Unemployment Claims
