Daily Technical Outlook

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GBPAUD Double Bottom Breakout (May 02, 2017)

GBPAUD recently broke to the upside from a symmetrical triangle formation and is now breaking past a double bottom neckline around 1.7100. This would mean strong bullish signals for the pair, as the chart patterns are approximately a thousand pips in height.

The 100 SMA is still below the longer-term 200 SMA on the daily time frame so the path of least resistance is to the downside. However, the gap between the two is narrowing to indicate a potential upside crossover and draw more bulls in the game.

Still, it's worth noting that stochastic is indicating overbought conditions at the moment and could turn lower to reflect a pickup in selling pressure. In that case, GBPAUD could still make it back down to the bottoms at 1.6000 if selling pressure kicks in.

The RBA is scheduled to announce its monetary policy statement today and no changes to interest rates are eyed. In their earlier statement, the RBA sounded less upbeat about the economy as they acknowledged the slowdown in hiring.

Aside from that, PMI reports from China turned out weaker than expected. Over the weekend, both the official manufacturing and non-manufacturing PMI printed steeper than expected declines to reflect a slowdown in industry growth. Earlier today, the Caixin version of the manufacturing PMI indicated a fall from 51.2 to 50.3 versus the projected rise to 51.4.As for the pound, UK PMI readings are also due this week and more signs of resilience in the economy even with Brexit concerns could keep traders bullish on the currency.

By Kate Curtis from Trader's Way

 

[katetrades]

EURJPY Potential Breakout (May 03, 2017)

EURJPY has formed higher lows and higher highs, creating a rising wedge formation on its 1-hour time frame. A breakout in either direction is possible, setting the tone for longer-term trends for this pair.

A move below the 122.30 wedge support could be enough to confirm that the pair is in for a selloff or perhaps a larger pullback from its ongoing climb. A break past the 122.65 wedge resistance could indicate that a steeper uptrend is underway.

The 100 SMA is above the longer-term 200 SMA on this 1-hour time frame so the path of least resistance is to the upside. However, stochastic is indicating overbought conditions, which means that euro bulls are tired. If the oscillator heads south, price could follow suit.

Economic data from the euro zone turned out mostly in line with expectations so far this week, and unemployment change reports from Germany and Spain are still lined up for today. However, traders could turn their focus to the second round of French elections on Sunday as polls are suggesting a narrowing lead for Macron and rallies are getting violent.

As for the yen, banks are closed for the holidays in the next couple of days so liquidity is expected to be low. Still, the pickup in risk appetite has proved bearish for the Japanese currency and changes to US bond yields could impact price action as well.

By Kate Curtis from Trader's Way

 

[katetrades]

GBPUSD Range Breakout Correction (May 04, 2017)

GBPUSD recently broke past its range resistance around the 1.2700 handle and found resistance at 1.2950. Price could be making a pullback to the broken resistance, and applying the Fib tool on the daily swing low and high shows that this area lines up with the 38.2% retracement level.

In addition, a rising trend line can be drawn to connect the lows since March this year and this support area also lines up with the Fibs and the 200 SMA. For now, the 100 SMA is below the 200 SMA to suggest that the path of least resistance is to the downside but the gap is narrowing to show that an upward crossover might be due.

Stochastic is heading south from the overbought region to show that bearish pressure is in play. This could keep the correction going until the 1.2650-1.2700 area, with the 61.8% Fib near the 100 SMA as the line in the sand for the uptrend.

Strong US leading jobs reports and the FOMC statement spurred dollar demand as both suggested that the US central bank could stay on track towards hiking rates two more times this year. Fed officials shrugged off the Q1 GDP miss and assessed that growth could continue at a moderate pace and that inflation is likely to hit its 2% target in the medium-term. The ADP jobs figure came in at 177K versus 175K while the ISM non-manufacturing PMI rose from 55.2 to 57.5, higher than the 56.1 consensus.

As for the pound, UK PMI readings have also been beating expectations, with both manufacturing and construction sectors reporting stronger expansions rather than a slowdown. The services PMI is due next and this usually has a stronger impact on the currency. Analysts are expecting to see a drop from 55.0 to 54.6 but an upside surprise might be in the cards.

By Kate Curtis from Trader's Way

 

[katetrades]

AUDUSD Descending Triangle Breakdown (May 05, 2017)

AUDUSD formed lower highs and found support at the .7500 major psychological level, creating a descending triangle chart pattern. Price just broke below the triangle support, signaling that a downtrend is due.

The chart pattern is approximately 250 pips tall so the resulting selloff could last by the same amount. The 100 SMA is below the 200 SMA and lines up with the triangle resistance, indicating that the path of least resistance is to the downside.

Stochastic is already indicating oversold conditions so buyers might take over from here. If so, a pullback to the broken triangle support could be underway before more bears join in on the action.

Economic data from Australia has been weaker than expected as the trade surplus narrowed from 3.66 billion AUD to 3.11 billion AUD, lower than the estimated 3.33 billion AUD figure. To top it off, official and Caixin PMI readings from China from both the manufacturing and non-manufacturing sectors printed weaker than expected results and indicated a slowdown in expansion, likely dampening demand for Australia's commodity exports down the line.

Meanwhile, the dollar has gained support after the FOMC retained their upbeat economic outlook, keeping rate hike expectations in play. Also, the healthcare bill passed the House of Representatives, reflecting a small victory for the Trump administration and their fiscal policy agenda. US NFP data is due today and leading indicators have been suggesting an upside surprise so there could be room for more dollar rallies.

 

[katetrades]

AUDUSD Descending Triangle Breakdown (May 05, 2017)

AUDUSD formed lower highs and found support at the .7500 major psychological level, creating a descending triangle chart pattern. Price just broke below the triangle support, signaling that a downtrend is due.

The chart pattern is approximately 250 pips tall so the resulting selloff could last by the same amount. The 100 SMA is below the 200 SMA and lines up with the triangle resistance, indicating that the path of least resistance is to the downside.

Stochastic is already indicating oversold conditions so buyers might take over from here. If so, a pullback to the broken triangle support could be underway before more bears join in on the action.

Economic data from Australia has been weaker than expected as the trade surplus narrowed from 3.66 billion AUD to 3.11 billion AUD, lower than the estimated 3.33 billion AUD figure. To top it off, official and Caixin PMI readings from China from both the manufacturing and non-manufacturing sectors printed weaker than expected results and indicated a slowdown in expansion, likely dampening demand for Australia's commodity exports down the line.

Meanwhile, the dollar has gained support after the FOMC retained their upbeat economic outlook, keeping rate hike expectations in play. Also, the healthcare bill passed the House of Representatives, reflecting a small victory for the Trump administration and their fiscal policy agenda. US NFP data is due today and leading indicators have been suggesting an upside surprise so there could be room for more dollar rallies.

By Kate Curtis from Trader's Way

 

[katetrades]

USDCAD Channel Support (May 08, 2017)

USDCAD has been trading inside an ascending channel on its long-term time frames and is currently testing resistance. If this holds, price could make a correction to support and the nearby Fib levels. In particular, the 61.8% retracement level coincides with the 1.3450 minor psychological mark and a former resistance area.

The 100 SMA is above the longer-term 200 SMA on the daily chart so the path of least resistance is to the upside. In addition, both moving averages are close to the channel support, adding to its strength as a potential floor.

Stochastic is indicating overbought conditions and is turning lower to show that bearish pressure is coming into play. Price could follow suit and could continue dropping until the oscillator reaches the oversold area and turns back up.

US economic data turned out stronger than expected on Friday as the NFP report indicated a 211K increase in hiring versus the projected 194K figure. However, there were downward revisions to earlier reports. The jobless rate improved from 4.5% to 4.4% instead of rising to the estimated 4.6% reading while average hourly earnings increased 0.3% as expected.

Meanwhile, Canada printed a 3.2K increase in hiring, short of the estimated 20K gain and the earlier 19.4K increase. The jobless rate improved from 6.7% to 6.5% instead of staying unchanged. The Ivey PMI ticked up from 61.1 to 62.4, slightly higher than the projected 62.3 reading. Crude oil price changes could also influence Loonie price action from here.

By Kate Curtis from Trader's Way

 

[katetrades]

NZDUSD Double Bottom (May 09, 2017)

NZDUSD could be in for a reversal from its selloff as the pair formed a double bottom pattern on its 1-hour chart. Price still has to test and breakout from the neckline at the .6960 level before confirming that an uptrend is in order.

The chart pattern is approximately 100 pips tall so the resulting breakout could be of the same size. The 100 SMA just crossed above the longer-term 200 SMA on this time frame so the path of least resistance is to the upside. Also, stochastic is pointing up and heading north so NZDUSD might follow suit.

However, US economic reports have been mostly stronger than expected in the past few days as the NFP report printed a higher than expected 211K gain in hiring versus the estimated 194K reading. Also, the Fed labor market conditions index enjoyed a large upgrade from 0.4 to 3.6 in March.

The main catalyst for this short-term setup might be the RBNZ decision, which could show a slight shift to a less dovish bias. Economic reports from New Zealand have been coming in mostly stronger than expected while the latest Global Dairy Trade auctions have reflected gains in dairy prices.

No actual policy changes are expected from the RBNZ this month so traders will pay close attention to any changes in rhetoric. Meanwhile, the US has its CPI and retail sales reports lined up at the end of the week.

By Kate Curtis from Trader's Way

 

[katetrades]

NZDUSD Potential Breakout (May 10, 2017)

NZDUSD has formed lower highs and higher lows on its 1-hour chart, creating a symmetrical triangle pattern. Price just bounced off support and could be due for a move back to resistance.

The 100 SMA is below the longer-term 200 SMA on this chart so the path of least resistance is to the downside. However, the moving averages could simply be oscillating so range-bound conditions could persist.

Stochastic is on middle ground but is on the move up to show that buyers are in control of price action. If a breakout happens, the pair could move by an additional 100 pips or the same height as the triangle pattern.

The main catalyst for the move could be the upcoming RBNZ interest rate statement. No actual rate changes are expected for now but traders could get some clues on future policy action based on any shift in rhetoric. Economic data from New Zealand has been mostly upbeat so policymakers could signal that they're not looking to cut rates anytime soon.

Only US import prices and the federal budget balance are lined up in the New York session so traders might turn their attention to political headlines. So far, North Korea's announcement about another missile test has kept risk-taking in check and investors are also wary about Comey's resignation.

By Kate Curtis from Trader's Way

 

[katetrades]

NZDUSD Long-Term Breakdown? (May 11, 2017)

NZDUSD has been trading inside what appears to be a falling wedge pattern on its daily chart. Price is currently testing support and seems to be pushing for a break lower, indicating that a steeper selloff is about to happen. Stochastic has made it out of the overbought zone to suggest a return in buying pressure, but the oscillator appears to be having difficulty sustaining its climb.

This wedge formation is approximately 600 pips tall so the resulting downtrend could be of the same size. The 100 SMA is below the longer-term 200 SMA on the daily chart so the path of least resistance is to the downside. Also, the 200 SMA lines up with the wedge resistance, adding to its strength as a ceiling in case the pair bounces back up.

A few hours back, the RBNZ made its interest rate decision and announced that it would be keeping rates unchanged at 1.75% as expected. The actual statement was not as upbeat as many expected, leading the Kiwi to tumble across the board. Policymakers also highlighted several uncertainties and gave no indication that they're looking to hike soon.

Meanwhile, the dollar has enjoyed some support from mostly upbeat US medium-tier reports and hawkish Fed rhetoric. Rosengren reiterated his view that three more rate hikes seem reasonable this year and even though he's not a voting member, US markets and bond yields closed mostly higher on these remarks.

Up ahead, US PPI and initial jobless claims are due but the bigger market-movers for the dollar might be the retail sales and CPI reports due on Friday. Only the Business NZ manufacturing index is lined up from New Zealand for the rest of the trading week but quarterly retail sales reports due over the weekend could lead to gaps in the next trading week.

By Kate Curtis from Trader's Way

 

[katetrades]

GBPAUD Channel Retracement (May 12, 2017)

GBPAUD is moving inside an ascending channel connecting its highs and lows since mid-April. Price just bounced off the resistance and could be due for a test of support at the 1.7400 major psychological level.

Using the Fib retracement tool on the latest swing low and high shows that this support area lines up with the 38.2% level while the 50% level coincides with the channel support. The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside, which means that the uptrend is more likely to resume than to reverse.

Stochastic is pulling up from the overbought zone to indicate that buyers are regaining control of price action. However, the gap between the moving averages is narrowing to suggest that bullish momentum is fading. A break below the lowest Fib around 1.7300 could be enough to indicate that a downtrend is about to take place.

The BOE statement turned out less hawkish than expected even as the central bank kept monetary policy unchanged. Policymakers warned that Brexit risks could weigh heavily on consumer spending and living conditions due to subdued wage growth and rising price levels.

Economic data also turned out weaker than expected, with manufacturing production down 0.6% and industrial production down 0.5%. There were no reports released from Australia then, allowing the Aussie to take advantage of the pickup in commodities. However, these gains could be returned as China reported a steep fall in iron ore prices again.

By Kate Curtis from Trader's Way

 

[katetrades]

AUDUSD Descending Channel (May 15, 2017)

AUDUSD has been trending lower recently and is now moving inside a descending channel on its 4-hour chart. Price just bounced off support and is looking to pull back to the resistance at the .7450 minor psychological level.

This is in line with the 50% Fib and a broken support zone. A larger pullback could last until the channel resistance closer to the 61.8% retracement level and the 100 SMA dynamic resistance. This short-term MA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside.

Stochastic is also heading down from the overbought zone to indicate that selling pressure is about to pick up. If any of the nearby resistance levels hold, price could make its way back down to the swing low at .7325 or onto the channel support closer to the .7300 handle.

Economic reports from China and Australia have been mostly disappointing last week and the RBA statement did acknowledge these signs of a slowdown. Earlier today, China reported a lower than expected industrial production reading of 6.5% year-over-year versus the projected 7.0% gain and the earlier 7.6% increase. Fixed asset investment and retail sales also slowed significantly.

Over in the US, the dollar was bogged down by weaker than expected CPI and retail sales figures. Headline CPI came in at 0.2% versus 0.3% while core CPI printed a meager 0.1% uptick. Headline retail sales increased 0.4% versus 0.6% while core retail sales advanced by 0.3% versus 0.5% to signal that the consumer sector is not that strong yet.

By Kate Curtis from Trader's Way

 

[katetrades]

NZDUSD Shallow Channel (May 16, 2017)

NZDUSD has been gaining ground recently but could be due to resume its drop as it approaches the channel resistance. Price has been trading inside a shallow descending channel with the top around the .6930 level.

If this keeps gains in check, the pair could head back down to support at the .6800 major psychological mark. The 100 SMA is below the longer-term 200 SMA on the 1-hour time frame, signaling that the path of least resistance is to the downside. However, stochastic is turning up from the overbought zone to suggest that buyers are trying to regain the upper hand.

Over the weekend, New Zealand printed stronger than expected quarterly retail sales figures. This allowed the Kiwi to recover after bulls were disappointed by the less hawkish than expected RBNZ statement last week. Up ahead, PPI data and the Global Dairy Trade auction could lead to more volatility. Analysts are expecting to see gains in producer prices, which would likely translate to higher consumer inflation down the line.

As for the US, traders are starting to doubt that the Fed can hike rates in June after the Empire State manufacturing index slid from 5.2 to -1.0 instead of improving to 7.2. Underlying data showed declines in new orders and shipments. Building permits and housing starts, along with industrial production and capacity utilization, are lined up from the US today.

By Kate Curtis from Trader's Way

 

[katetrades]

EURJPY Uptrend Correction (May 17, 2017)

EURJPY is still trending higher and has recently broken past the resistance at the 124.50 minor psychological level. Price zoomed up close to the 126.00 resistance from there but could be due for a pullback before posting more gains.

Applying the Fibonacci retracement tool on the latest swing low and high reveals that the 61.8% retracement level lines up with the broken resistance that might now hold as support. The 100 SMA is above the 200 SMA to suggest that the uptrend could continue and is also close to the area of interest.

Stochastic is indicating oversold conditions so buyers could take over soon. A shallow correction could find support at the 38.2% Fib or 125.00 handle while a larger correction could last until the rising trend line support.

Euro zone economic data turned out mixed, with the region's flash GDP coming in line with expectations of 0.5% growth and Germany's ZEW economic sentiment posting a weaker than expected climb from 19.5 to 20.6 versus the consensus at 22.3. Euro zone trade balance and the region's ZEW index came in better than expected.

In Japan, core machinery orders posted a meager 1.4% gain versus the projected 2.6% jump. Revised industrial production data is due next and no change from the preliminary 0.5% uptick is eyed.

Market sentiment and US bond yields appear to be influencing yen price action as well, with the latest national security issues in the Trump administration dampening demand for the dollar and keeping the yen supported. However, the North Korea situation remains an issue and could weaken support for JPY as well.

By Kate Curtis from Trader's Way

 

[katetrades]

GBPUSD Countertrend Setup (May 18, 2017)

GBPUSD has been trending higher recently, moving inside an ascending channel visible on its 1-hour and 4-hour charts. Price just bounced off support and could be due for a test of resistance from here.

The 100 SMA is above the longer-term 200 SMA on the 4-hour chart so the path of least resistance is to the upside. However, stochastic is approaching the overbought zone to indicate a return in selling pressure so the ceiling might still hold. If so, a pullback to the channel support at 1.2925-1.2950 could offer a better long entry level.

UK economic data has been mostly stronger than expected, with CPI readings indicating a strong surge in headline and core inflation. Jobs data was also upbeat as the claimant count came in at 19.4K versus the earlier 33.5K increase while the unemployment rate edged down from 4.7% to 4.6%. The average earnings index advanced from 2.3% to 2.4% as expected to reflect a bit of wage growth.

Meanwhile, the dollar is currently being weighed down by political headlines as the focus has shifted to Trump's alleged intelligence information leak to Russia. An official probe has been ordered by the Justice Department, leading market watchers to worry that any fiscal reforms would likely be delayed by these issues. Initial jobless claims and the Philly Fed index are lined up today.

By Kate Curtis from Trader's Way

 

[katetrades]

GBPUSD Short-Term Channel (May 19, 2017)

GBPUSD enjoyed additional volatility recently but is still trading safely inside its ascending channel on the 1-hour time frame. Price just bounce off support and could be due for another test of resistance.

The 100 SMA is also above the longer-term 200 SMA so the path of least resistance is to the upside. In addition, this short-term moving average lines up with the channel support, adding to its strength as a floor. However, stochastic is turning back down to suggest that another dip is possible.

Economic data from the UK has been stronger than expected this week. Headline and core CPI both beat expectations but traders had been wary of the consumer sector feeling the pinch from higher prices of goods. Jobs data still reflected upside momentum in hiring while the average earnings index and the latest retail sales figure reflected resilience among consumers.

However, the dollar made a pretty strong comeback in the latter sessions as the investigations on Trump's alleged intelligence information leak to Russia went on. Other government officials attempted to reassure that progress is still being made in terms of fiscal policy reform, leading to a bounce in US equities as well.

In terms of data, US initial jobless claims and the Philly Fed manufacturing index beat expectations. Only the CBI industrial orders expectations index is due from the UK today and there are no reports due from the US.

By Kate Curtis from Trader's Way

 

[katetrades]

EURJPY Broken Trend Line Retest (May 22, 2017)

EURJPY recently broke below its short-term ascending trend line to indicate that a reversal from the uptrend is in order. Price dipped to the 122.50 minor psychological support then pulled back up to the broken support, which might now keep gains in check.

Applying the Fib tool on the latest swing high and low shows that the 61.8% retracement level lines up with the broken support zone. However, the 100 SMA is still above the longer-term 200 SMA on the 1-hour chart so there may still be room for some gains.

Stochastic is already turning down from the overbought area to suggest that selling momentum is about to kick in. If so, EURJPY could make its way back down to the swing low or create new ones.

Over the weekend, the focus was back on Brexit issues as the UK said that it is not willing to pay the bill that the EU is charging. This led to speculations that talks or even the Brexit itself might get delayed, lending some support for the shared currency. There's not much in the way of top-tier data from the euro zone today so traders might turn their attention to the speech by UK PM May.

As for the yen, Japan's trade balance came in weaker than expected at 0.10 trillion JPY versus the consensus at 0.25 trillion JPY. To top it off, the earlier reading was downgraded to show a smaller surplus of 0.11 trillion JPY. Still, market sentiment and US bond yields could drive yen pairs around.

By Kate Curtis from Trader's Way

 

[katetrades]

GBPAUD Descending Triangle (May 23, 2017)

GBPAUD has formed lower highs and found support at the 1.7375 area, creating a descending triangle formation on its 1-hour time frame. This chart pattern is around 250 pips tall so a breakout in either direction could result in a rally or selloff of the same height.

Price is currently testing support and could be due for a downside break as the 100 SMA is below the longer-term 200 SMA. However, the gap between the moving averages has narrowed to indicate a potential upside crossover that might draw more buyers to the mix. In addition, stochastic is pulling up from the oversold zone to reflect a return in bullish momentum.

The British pound is currently being weighed down by reports of an explosion in Manchester Arena in the UK, leading to 19 fatalities and at least 50 injured. To top it off, political risk is back in the spotlight as the UK could walk out of Brexit talks if the EU slaps them with a bill. Negotiations and the snap election are set to happen next month.

Meanwhile, concerns about the Chinese and Australian economies are starting to fade as the focus appears to be shifting back to geopolitical risks. There have also been no major reports out of Australia and China so far this week. Either way, changes in market sentiment could also be a driving factor for this pair moving forward.

By Kate Curtis from Trader's Way

 

[katetrades]

NZDJPY Breakdown Pullback (May 24, 2017)

NZDJPY recently broke below a short-term rising trend line support and dipped close to the 76.00 mark. Price pulled up from there and looks ready to retest the broken support.

Applying the Fib tool on the latest swing high and low on the 1-hour chart shows that the 61.8% level lines up with the broken trend line, which might now hold as resistance. If so, NZDJPY could make its way back down to the swing low.

The 100 SMA is above the longer-term 200 SMA, though, so the path of least resistance is to the upside. However, stochastic has been indicating overbought conditions for quite some time and turning lower could draw more sellers to the game.

The Kiwi has been one of the more resilient currencies lately, holding up well against the yen and dollar even when risk aversion picks up. After all, economic data from New Zealand has been mostly upbeat in the past couple of weeks, underscoring the RBNZ's inclination to refrain from cutting rates in the near future.

However, the yen could draw more support if geopolitical uncertainties persist and risk aversion extends its stay in the financial markets. Apart from that, changes in dollar demand owing to Fed rate hike expectations could also push the yen around.

By Kate Curtis from Trader's Way

 

[katetrades]

EURAUD Ascending Channel (May 25, 2017)

EURAUD is still moving safely inside its short-term ascending channel and has recently pulled back to support again. Applying the Fib tool on the latest swing low and high shows that the channel bottom lines up with the 50% Fibonacci retracement level near the 1.4900 major psychological mark.

The 100 SMA is above the longer-term 200 SMA on the 1-hour chart so the path of least resistance is still to the upside. In addition, the 100 SMA is moving close to the Fibs and channel support, adding to its strength as a potential floor. Also the gap between the moving averages is widening to reflect stronger bullish pressure.

Stochastic seems to be climbing out of the oversold region to suggest a return in bullish pressure. If you're waiting for more confirmation, a break past the small descending triangle resistance around 1.4950 could be indicative of upside momentum.

Moody's recently downgraded China's outlook from "stable" to "negative" on forecasts of eroding financial strength and slowing growth. The credit rating agency noted that rising government debt levels won't be enough to keep overall economic performance supported, signaling even weaker demand for Australia's commodity exports down the line.

There are no reports due from Australia for the rest of the week so market sentiment could push AUD around. In the euro zone, PMI readings have been mostly stronger than expected while business and consumer sentiment figures from Germany have indicated improvements. French and German banks are closed for the holiday today.

By Kate Curtis from Trader's Way

 

[katetrades]

Short-term Reversal on GBPAUD (May 26, 2017)

GBPAUD failed in its last two attempts to break below support around 1.7275, creating a double bottom pattern with the neckline at 1.7415. Price has yet to break past the neckline before confirming this reversal formation but if that happens, the pair could head north by an additional 140 pips or the same height as the chart pattern.

However, the 100 SMA is below the longer-term 200 SMA and seems to be holding as dynamic resistance, which indicates that the path of least resistance is to the downside. Also, stochastic is heading down to show that sellers are in control of price action at the moment.

The British pound was one of the weaker performers of the day as the UK second estimate GDP featured a downgrade from 0.3% to 0.2% instead of holding steady. This cast doubts on traders' outlook that the UK economy could stay resilient even with Brexit going on, adding to the current list of issues already dampening the currency's gains.

Meanwhile, the Australian dollar could be poised to benefit from a rebound in commodities after the OPEC decided to extend their output deal by another nine months. Although crude oil reacted by selling off on profit-taking, this decision could keep oversupply concerns in check and support other commodities as well.

By Kate Curtis from Trader's Way