The Aussie got pressure after the Reserve Bank of Australia decision
Yesterday the Reserve Bank of Australia decided to reduce the key rate by 0.25%, from 2.00% to 1.75%. This provoked the fall of the pair AUD/USD.
Earlier, the Chinese Manufacturing PMI declined from 49.7 to 49.4 which also put pressure on the pair. As a result, the Aussie lost around 180 points.
Australian figures: in March the number of building permits increased by 3.7% against the forecast of decline by 3.0%. Also, the budget was considered. It’s planned deficit-free budget despite the reduced taxes.
Tomorrow we are expecting positive news from Australia. Retail sales are expected to increase by 0.3%, the trade balance is expected to improve.
The US will provide several important macroeconomic reports.
First, we’ll see ADP Nonfarm Employment Change. It is expected that the economy added 195K jobs in April.
Later, the US Institute will present the Services PMI. It is expected that the basic index value will be fixed at 52.1%. Also, pay attention to ISM Non-Manufacturing PMI.
How to trade
We expect decrease if the pair falls below 0.7457. The short-term upward movement is possible in the range of 0.7520 - 0.7545. We would buy put options if the pair falls below 0.7457. We would buy call options if the pair rises above 0.7520.
Expiry time: 20:00 GMT