Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Australian dollar post-RBA boost may continue as uranium prices surge

Australian dollar may continue its post-RBA climb as uranium prices surge and global recession fears are back in the spotlight after the World Bank report.

Source: Bloomberg

Wednesday’s Asia-Pacific outlook

The Australian dollar paced higher against the US dollar through the New York trading session overnight, benefiting from Tuesday’s Reserve Bank of Australia (RBA) rate decision. A rosy session on Wall Street helped support the risk-sensitive currency as the dollar fell against most of its peers. The Japanese Yen, however, continued to deteriorate, with USD/JPY hitting a fresh multi-decade high.

Australian bond yields rose following the RBA’s surprise decision as traders ditched bond holdings in preparation for further rate hikes this year. Analysts moved quickly to price in more aggressive rate hike bets for the July RBA meeting. The higher trajectory has some economists concerned that it may trigger a recession as households grapple with high debt levels.

Spot uranium prices rose on news that the United States may see a government-led initiative to bolster the country’s uranium supply and industry. Australia, being a large exporter of uranium, may benefit from the higher prices. If the US follows through and creates a stockpile of uranium, it would likely tighten global supply. Brazil recently loosened restrictions around uranium mining, also responding to the impacts of the war in Ukraine.

A global recession remains a notable question mark hanging over markets, something that is likely to temper sentiment through the remainder of the year as central banks tighten down on prices. A report released by the World Bank signaled a worrying concern over a global recession. The report showed that world growth is expected to cool this year to 2.9%. That is well below what the IMF forecasted earlier this year. Growth-sensitive oil prices rose despite the grim report. The American Petroleum Institute (API) reported a build in US crude inventory levels, which also failed to cool WTI prices.

This morning, Japan’s final first-quarter GDP growth numbers will cross the wires. Japan’s monetary policymakers have been hesitant to join its peer institutions in normalizing policy amid lagging inflation and wages. Later today, Australia will see a business confidence update for May from the NAB, along with the RBA chart pack. The Reserve Bank of India (RBI) is expected to increase its benchmark rate by 40-basis points. USD/INR may fall on the decision’s delivery, especially if the RBI takes a cue from the RBA and delivers a jumbo hike.

AUD/USD technical forecast

AUD/USD is attempting to break above the pseudo-50% Fibonacci retracement level, which sits directly below the May swing high. If prices break above those levels of resistance, more upside may follow. The MACD oscillator crossed above its centerline, aiding the case for higher prices. Alternatively, a drop would put the 38.2% Fib level on the defense.

AUD/USD daily chart

Source: TradingView


This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.