RBA leaves the rate unchanged

Tuesday kicked off with an interest rate decision in Australia. Interestingly enough, according to various experts, it was a close call – some of them were predicting a 25bp rise and the rest of them were advocating for no change. Those supporting the second option were right, as RBA left the rates unchanged at 3,6%. The reaction has been negative so far & the AUD is losing across the board, which should not be a shocker considering that a big chunk of the market was expecting a rise.

The rate decision from Australia almost depletes the Tier-1 data in the calendar today. There is one piece left – JOLTS job openings which will be published after the start of the American session. 10.49M is expected, which would be a decline from the 10.82M published a month ago.

Monday was very successful for the stock traders. Indices rose again, especially those in the US. The winning streak is currently very impressive and the rise is almost vertical. At some point, we should get a correction caused by the take profit action and there is a chance it could happen today or tomorrow.

Yesterday, all eyes were on oil. As you probably know, OPEC cut the output on Sunday, which caused a higher opening on Monday and a large bullish gap. The thing with the gaps is that they like to be closed. It did not happen yesterday and it will probably not happen today, but this is something the potential buyers have to keep in the back of their minds. Thanks to OPEC, the sentiment on oil is positive but the risk of a short/mid-term bearish correction on oil is significant.

Source: https://www.axiory.com/analytics/market-news/rba-leaves-the-rate-unchanged