Morning Insights 5th October

Simon Alagbe

Analyst


Instrument: AUDUSD

The Aussie continues its recent gains against the Greenback in Yesterday's session ahead of key employment data scheduled for release this week. The Greenback has enjoyed relative strength from the statement of the Federal Reserve to taper stimulus as early as next month. The Reserve Bank of Australia at its policy meeting today was very dovish, leading to a sell-off of the Aussie which is expected to regain before the end of today's trading session. The RBA stated that the condition for a rate hike will not be met before 2024, citing the interruption of the delta variant as a major cause. They also could not see a recovery back to pre-delta level before 2nd half of next year.


Technicals: 

The pair is trading around a previous resistance zone turned to support from where a rebound to the upside is expected with a target at0.72880 and stop-loss at 0.72390. 


Fundamentals 

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