Global macro overview for 19/12/2017

During the Asian session, the global investors got acquainted with meeting minutes from the December Reserve Bank of Australia meeting, where, as expected, the main interest rate was maintained at 1.5%. In the minutes, investors can find hawkish accents regarding the prospects for the Australian labor market and generally favorable conditions in the economy, which should contribute to the increase in wage pressure and inflation. It is worth to notice, that recently the RBA has decided to remove the phrase saying that "inflation will most likely remain low for some time" from the recent meeting minutes. In addition, the bank is still convinced that the low level of interest rates is support for the economic climate and ensures sustainable economic growth and the return of inflation to the target in the medium term. Although there are no interest rate hikes on the horizon, the notes supported slightly the Australian Dollar.

Let's now take a look at the AUD/NZD technical picture at the H4 time frame. The markets still corrects the last drops. The current upward correction from 0.7500 has exceeded the maximum correction in the total downward impulse from 0.8123, which in technical terms supports the demand side of this pair. The nearest resistance in the form of converging average EMA 100- and 200-periodic D1 scale is at the level of 0.7698. Exit above the round level of 0.77 should lead to a continuation of increases in the area of 0.7750. The 50-period average EMA on a daily basis determines support at 0.7645.

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