Whilst nobody expected RBA’s minutes to be hawkish, they did have a more dovish tilt as they suggested they might be an extended way faraway from removing QE.

Asian Indices:


Australia's ASX 200 index rose by 75.4 points (1.03%) and currently trades at 7,387.70

Japan's Nikkei 225 index has risen by 283.03 points (0.97%) and currently trades at 29,444.53

Hong Kong's Hang Seng index has fallen by -219.38 points (-0.76%) and currently trades at 28,622.75

UK and Europe:


UK's FTSE 100 futures are currently up 23 points (0.32%), the cash market is currently estimated to open at 7,169.68

Euro STOXX 50 futures are currently up 18 points (0.44%), the cash market is currently estimated to open at 4,150.67

Germany's DAX futures are currently up 63 points (0.4%), the cash market is currently estimated to open at 15,736.64

US Futures:


Forex: AUD/NZD takes the hit on dovish RBA minutes

Think ranges across currency pairs overall, but NZD is that the strongest currency. The Australian dollar took a dip lower on the discharge of RBA’s minutes which stated it had been “premature” for the RBA to cease their QE program. This makes it the more likely RBA will retain their dovish stance, therefore the currency could come under further pressure from NZD and CAD as RBNZ and BOC are the more hawkish of the three. AUD/NZD fell -0.3% to a two-day low after the minutes were released.


The US dollar index (DXY) closed to a six-day high yesterday ad is probing a cluster or resistance levels (last week’s high, a broken trendline and therefore the 50-day eMA). This makes the 90.50/60 area a pivotal zone and potentially one among importance around tomorrow’s FOMC meeting.


EUR/USD trades within yesterday’s bullish inside day, which is simply off-of Friday’s lows. We expect the pending FOMC meeting may suppress volatility but if we must pick a direction it might be for a minor technical bounce from current levels.


USD/CAD has dipped beneath its 1.2144 breakout level and therefore the potential bullish flag isn't exactly pleasing to the eyes, but it's formed a better low at 1.2124 at its H4 20-day eMA. We may have to attend for tomorrow’s FOMC for its next directional move, but the bias remains for a run towards the initial target at 1.2200.


USD/JPY reached our 110 target yesterday. Admittedly later than we’d hoped – but it got there none the less. 110 provided support during overnight trade so we've our pivotal level for today’s European and US sessions.


GBP/JPY is sticking to the retracement line mentioned within the Asian Open report. We still suspect its corrective low has been seen at 154.10 and would welcome any low volatility dips before the anticipated breakout. Note the cluster of support from several eMA’s around 154.95 on the 4H chart.



Given yesterday’s bullish engulfing candle, we expect it’s time to outlay a bullish scenario for AUD/JPY. Previously we noted its inability to carry onto gains above 85.00 so were searching for an opportunity of trendline support, during a risk-off move. With indices and risk sentiment generally leaning more to the positive side, the series of upper lows on AUD/JPY during a longtime uptrend, we should always even be on one's guard for an opportunity (and daily close above 85.00. Although a more cautious approach is to attend for an opportunity of recent highs at 85.20.


Commodities:

Oil prices remained flat overnight and traded during a tight range, just off their two-year highs. WTI futures sit around 71.13 and brent at 73.15. The stronger dollar may have capped upside, but it's not yet been enough to show its trend.


Gold prices also remained anchored to yesterday’s close price after a volatile session. we discover it difficult to possess a directional bias before the FOMC meeting, so like better to step aside until after it.