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Forex Trading on Today’s US CPI Inflation Figures. Trading Long on AUDCAD & AUDJPY?

The Fed Looking for a Lower CPI (Inflation) Number to Justify Lowering Interest Rates

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In today’s GCI Market Outlook, let’s take a look at Forex Trading on the S&P500, the NASDAQ, Gold, XAUUSD, EURUSD, AUDCAD, AUDCHF, and AUDJPY.

Today’s RBA Interest Rate decision held to the prediction and was lowered by 0.25%.

When we see a pullback into a technical sign like this AUDJPY lower trend line, this gives us the opportunity to trade back into the trend.

We see MACD is still bullish, and we may want to wait for other technical signals, like a turnover of the stochastic oscillator, before going long.

On AUDCHF, we see a similar situation, but price action has broken through the lower trend line, and the signal line has broken out of the histogram on MACD, which is a bearish sign.

We have the same view on AUDCAD.

Watch out for today’s CPI from the US, as the Fed will be looking for a reason to lower interest rates at 8:30 am New York time.

If the number is less than 2.8% we may see the indices like the S&P 500 and the NASDAQ moving up.

Of course, if interest rates go lower, the value of USD pairs will fall, and we are seeing typical August consolidation today.

Metals are traded against the USD, and we still see Gold mid-range in a range trading opportunity, so watch the news.

Last time we were looking at a long position on silver, and the bull run continues, so if we see a technical pullback, we will look at buying.

Again, today’s CPI numbers may drive price action on silver as well, so watch the news from Washington.

That’s all for now.

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