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Aussie Strong Despite RBA Inaction07 August 2018 by Dave Evans

Morning Report: 07.00 London

The Australian dollar is performing well, despite the RBA opting to keep interest rates on hold. The AUD/USD has made good yesterday’s losses, rising above 0.7400 with some change. The AUD/JPY is rallying, challenging the 82.50 level.

Dollar pairs are generally performing well, lifted by the dollar’s poor performance since Friday’s payroll disappointment.

The euro is making small gains, with the EUR/USD lifting off the 1.1550 handle, though is lagging the pound slightly, pushing the EUR/GBP below 0.8940 despite yesterday’s rally.

The GBP/USD is on the rise, but has some way to go to recover yesterday’s losses which saw sterling plunge to its lowest levels for 11 months. The GBP/JPY is also making gains, bouncing off support at 144.00.

The USD/CAD continues to underperform as the Canadian dollar holds firm. The USD/CHF is also struggling as the dollar takes hold.

Coming up today

Today we have UK Halifax HPI at 08.30.

Canadian Ivey PMI is at 15.00.

Trade Idea

The USD/CAD is slipping lower as the US dollar struggles and the Canadian dollar holds firm with oil prices stable around $73.

August 7th, 2018: Aussie Strong Despite RBA Inaction

There could be further downside as the dollar eases of the pace and a good way to play this is a LOWER trade predicting that the USD/CAD will close below 1.2900 in 14 days for a potential return of 171%.

August 7th, 2018: Aussie Strong Despite RBA Inaction