Today’s Key Market Drivers: 1st October 2019

Aussie Dollar awaits RBA decision.

The Aussie Dollar continues to remain rangebound before the RBA October policy statement today when it is widely tipped the Central Bank will lower the cash rate by 0.25%. Over 75% of traders surveyed expect a rate cut but any impulsive move higher or lower will be a result of what RBA forward guidance commentary accompanies the statement.

If the RBA does cut today but indicates a period of “rates on hold” the AUD could rally strongly. However, if the RBA indicates that it is willing to consider further cuts if needed then the currency could fall sharply back towards its 2019 year low. My expectation is they will cut today and not hesitate to cut in the future if needed.

Current trends set to continue until the back half of the week. The current trends in financial markets will likely continue until we get some high impacting economic news out of the northern hemisphere or developments between the US and China heat up once again. Although stock markets were slightly higher on Monday the trading ranges are small across all currency and stock index markets and I urge you to remain patient and not try and chase these tight range moves.

Kiwi Dollar continues to slide as Business investment weakens again.

Monday saw the NZD v USD fall to an 11-year low against the US Dollar as a Business Investment Survey showed confidence falling once again. The RBNZ meets later in October and just like the RBA the Kiwi Central Bank is expected to drop rates in coming months to help lift business and consumer confidence which underpins inflation and growth. I do not think we have seen the low on the NZD yet.

Yesterday is out of your control. Work on what you can change today.


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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