Today’s Key Market Drivers: 16th April 2019
RBA policy minutes in focus Tuesday.
The Reserve Bank of Australia’s April minutes will be released at 11.30am AEST today and has the potential to move the AUD up to half a cent. The RBA is expected to drop the official cash rate to 1.25% before the end of the year and today’s minutes will give traders an insight into what was being discussed behind closed doors at the RBA meeting earlier in April.
How are people in the Euro Area feeling about the economy?
We will know the answer to that question at 7.00pm AEDT today when the latest Euro Area Economic Sentiment Survey is released. If sentiment is improving, we will likely see traders continue to add to long Euro positions that have seen it rally 140 ticks from its lows just over a week ago.
Today’s economic sentiment survey will be important however Thursday’s Industrial Production numbers will have a bigger impact if out of line with expectations. Traders are looking for a bottom in the recent downturn in global growth and with the Euro Area being the biggest economy in the world Thursday’s Industrial Production numbers will be a good test to whether a bottom has been hit.
Pound vs Aussie Dollar looks ripe to move higher.
The latest UK weekly earnings and monthly jobs numbers will be released today and as I point out in my daily video update this morning the Pound vs Aussie Dollar technically looks strong and a move back higher may be imminent. The market expects the official UK unemployment rate to tick higher from 3.9% to 4% but as always, the devil will be in the detail of the combined weekly earnings and jobs report.
Kiwi inflation data due at 8.45am AEST Wednesday.
The market expects New Zealand inflation to have fallen in the first quarter to an annualised rate of 1.7% vs the previous quarterly inflation reading of 1.9%.
If inflation is falling in New Zealand this will likely mean traders will sell the Kiwi Dollar confirming the RBNZ’s recent comments that the economy may need to see a rate cut in coming quarters. The NZD v USD is 2c lower post the RBNZ monthly statement and if tomorrow’s inflation data misses estimates the next level of support is 0.6650.
Patience and willpower.
Two things everyone has the ability to control and two of the most important attributes to trade successfully. Sadly very few novice traders can sit on their hands and simply wait. Most self-sabotage trading positions because they can’t help themselves, fiddling, placing trades that have a low probability of success and generally thinking they know where the price is going next and this is simply gambling.
If you are going to practise something as a trader, practise developing unstoppable willpower and discipline. Here are 3 of my favourite tips to practise patience and willpower.
- Get up early every day before the sun rises and never miss it. The benefits you will get by disciplining yourself to get out of bed early, particularly on the weekend is huge.
- Willpower is the most powerful thing you can have as a human being. My favourite way to practise willpower is by eating healthy food and not taking the easy option of eating food laced with sugar and fat. Challenge yourself every day to feed your body and mind with quality food and not trash. Most will disregard point 2, but I can assure you it’s incredibly important if you want to make consistently good trading decisions.
- Do one thing at a time and finish things religiously, everything! Practise it today. Whatever you are doing today, ensure you complete every task 100%, do one thing at a time and finish everything you start. Don’t take the easy option.
You must love the pressure; it’s the fuel winners rely on.
About the Author: Andrew Barnett
Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular keynote speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).
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