Market Snapshot – Hawkish RBA sends Aussie Rocketing Higher
Aussie Rushes Higher on Hawkish RBA
The AUDUSD pair was the star of the morning trade today as it rocketed higher by over 100 pips on the back some hawkish RBA minutes. While all the market attention has been focussed on the dollar, the euro and the pound, the Aussie has been going about its work silently over the past 2 weeks and today morning was no exception. There were very positive comments from the RBA in their meeting minutes and this helped to push the AUDUSD pair higher. It did face quite a bit of selling in the 0.7900 region but it was only short lived as the weakness in the dollar was seen all across the board and it could hold back the wave much longer. The 0.79 region has now given way and we are seeing the pair moving higher with 0.80 being the next obvious target.
European Stock Markets Continue to be Weak
The European stock markets continue to trade in a weak manner, something that we have been mentioning over the past week or so. Though the DAX had a bullish break last week, we had mentioned that it had to be taken with a pinch of salt. With the talk of tapering looming around the markets, the risk of a fall is never out of the question. With the ZEW economic sentiment coming in weaker than expect, it provided the trigger for the fall in DAX and with the euro stronger across the board, the stock markets in Europe fell in a broad manner and the choppy trading is expected to continue in the short term.
This article was originally posted on FX Empire