Today’s Key Market Drivers: 25th July 2018
“2nd Quarter Aussie Inflation data will be important for the AUD today.”
Bitcoin jumped back above $8000 on Tuesday and today at 3.00pm AEST I will be interviewing one of Asia’s most respected Cryptocurrency and Blockchain technology experts to pick his brain and find out if this new money exchange and information technology is here to stay or is it a bubble that will ultimately burst. If you would like to understand the facts about Cryptocurrencies and Blockchain technology please join me for this important live conference at 2.55pm AEST (Sydney time).
Just like Monday, there was no high impacting economic data to drive financial markets on Tuesday so there was no leader to drive currency values either. It’s been a topsy-turvy start to the week and that can often be the case when there is little economic news around or a major theme to get prices rolling. Today at 11.30am we will get the first high impacting economic news item for the week and it will directly impact the Aussie Dollar. The market will get to see just how much the Australian economy is expanding or contracting with the release of second-quarter Inflation figures which economists forecast will show a rise in inflation from 1.9% to 2.2% on an annualised basis. If you see a sudden shift in the price of the Aussie Dollar in the moment after 11.30am AEST today it will tell you the inflation number has missed or exceeded economists forecasts. Normally if inflation was to rise more than expected traders would immediately buy into the theory the RBA will raise the official cash rate from 1.5% however it won’t matter what the inflation figure says today the RBA isn’t going to touch the official cash rate in 2018 or the first half of 2019 with the current home mortgage crisis about to ramp up. I expect a move of up to half a cent post the data release this morning.
The Euro vs US Dollar is the most actively traded currency pair by volume and tomorrow will see the latest statement from the European Central Bank on its monetary policy program. Traders don’t expect any change to the overall interest rate policy or stimulus program that is running but what will move the Euro is any commentary from Mario Draghi in his press conference about future policy changes. At present traders expect the ECB to finish its current money printing program in December 2018 and potentially raise the official cash rate by mid-2019. If Draghi says anything that could be interpreted as the ECB may do something different the Euro will move sharply higher or lower. A more upbeat and positive Draghi will see the Euro likely move higher and a more sombre downbeat assessment of the European economy will see the Euro likely fall in value. He is due to speak at 9.45pm AEST Thursday.
Don’t forget to join me today at 3.00pm AEST for our Cryptocurrency and Blockchain technology conference call. The call will be recorded and made available to all members via the Trade Time App and Members Learning Centre on Thursday if you cannot make the call live.
Any trade updates throughout the day will be sent via Trade Time. You can also follow my daily updates on Facebook, Twitter, Instagram by searching for TrainwithAndrew. Make sure you subscribe to the Andrew Barnett YouTube channel after watching today’s Sunrise video below.
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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