We’ve got a simple technical setup on GBP/AUD lined up for the watchlist as upcoming Australian and U.K. economic updates may get the pair moving very soon.
Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at a simple range play on CAD/CHF, so be sure to check that out to see if there is still a potential play!
Intermarket Update:
Equity Markets Bond Yields Commodities & Crypto
DAX: 15701.42 +0.59%
FTSE: 7068.43 +0.56%
S&P 500: 4468.73 +0.23%
NASDAQ: 15105.58 -0.07% US 10-YR: 1.322% -0.019
Bund 10-YR: -0.327% -+0.002
UK 10-YR: 0.744% -0.004
JPN 10-YR: 0.049% +0.001 Oil: 70.67 +1.36%
Gold: 1,794.90 +0.16%
Bitcoin: $44,920.00 -2.16%
Ethereum: $3,272.99 -3.92%
Fresh Market Headlines & Economic Data:
Global stock markets slip on inflation, tax, regulation worries
U.S. August budget deficit falls as revenues recover
House Democrats propose new tax hikes to pay for their $3.5 trillion bill
The number of employed Italians increased by 338K (+1.5%) q/q in Q3
German Wholesale prices in August 2021: +12.3% on August 2020
French central bank raises growth outlook as economy booms
ECB’s Schnabel tries to allay German fears as inflation quickens
Walmart says litecoin tieup statement fake; cryptocurrency jolted
MicroStrategy Buys 5,050 More Bitcoins, Now Holds $3.16B Worth in Total
Upcoming Potential Catalysts on the Economic Calendar
RBA Assistant Governor Ellis speaks at 12:00 am GMT (Sept. 14)
Australia Business Confidence, House Price Index at 1:30 am GMT (Sept. 14)
RBA Governor Lowe speech at 3:00 am GMT (Sept. 14)
Japan Industrial Production at 4:30 am GMT (Sept. 14)
UK Claimant Count, Unemployment Rate at 6:00 am GMT (Sept. 14)
Spain Inflation Rate at 7:00 am GMT (Sept. 14)
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: GBP/AUD
On the one hour chart of GBP/AUD above, we can see the pair has settled into a consolidation pattern, roughly between 1.8735 – 1.8835 area and tightening up quickly. And with potential strong catalysts ahead from both Australia (RBA Lowe speech) and the U.K. (employment update), this is a great setup to watch for a straddle news play. This simple setup basically looks for a breakout of consolidation, and if the catalyst is strong enough, and a momentum move in one direction.
For this particular scenario, we’re on the lookout for dovish rhetoric from RBA Governor Lowe’s upcoming speech and better-than-expected U.K. jobs data to play the recent uptrend in the pair since last week.
If this occurs, both fundamental and technical traders may hop in long on an upside break, especially if the market can sustain above the recent swing highs around 1.8835 handle.
Of course, if the we see the opposite scenario of Lowe hinting at tapering or hiking rates soon (a very low probability scenario) and disappointing U.K data, then a downside breakout may occur.
This scenario actually aligns with the longer-term bearish reversal that we saw in August, and the 1.8800 major psychological handle may be viewed as a potential selling area as it may form a “broken-support-turned-resistance” pattern.
