AUDUSD is the pick of the bunch today so what’s the trade now?
The Aussie is the star performer today after some good data overnight, and a better risk tone all round. With the next RBA meeting tomorrow there’s perhaps some increased expectation for something a touch more hawkish than usual. Dip buying looks to be the trade for now but there might be a trade for shorts if the rally accelerates. Earlier I spoke to the guys at Core TV about AUDUSD and EURUSD.
In terms of RBA expectations, there’s not been any real changes to the forecast models. Expectations for tomorrow actually dropped from 0.1% on Friday to zero today. The market is still not seeing higher chances of a hike until May 2019, and even that’s only at 39.1%.