Look ahead: RBA minutes; API crude oil inventories; Topps Tiles; Kingfisher
FX traders brace for RBA minutes, ahead of the FOMC. Oil traders eye API crude oil inventories as they wait for clarity around OPEC+ output policy.
UK consumers in focus as Topps Tiles report H1 numbers and we get a trading statement from B&Q owner Kingfisher.
(Partial Video Transcript)
AUD/USD
Angeline Ong: Hello, welcome to IG’s “Look ahead” to Tuesday, the 21st of May. We've got a treat for our currency traders, starting with the RBA meeting minutes and also Westpac consumer confidence. Just having a look at the Australian dollar versus the US dollar here. What's really interesting is that ahead of the RBA minutes, the Aussie dollar, if I show you the weekly chart here is kind of holding at a pivotal point.
I've drawn that black line for you. If I zoom out, you see this green arrow that's really the pre-pandemic low where it's at right now. Remember those days before the pandemic? Well, I do. And what's also interesting is that we are seeing some momentum coming up to those RBA minutes. But it really does depend on how this formation, which I've drawn on the one day chart, pans out.
This is what technicians call a "bullish pennant" or "bull pennant". And what is key is that it reveals a strong bullish continuation for this cross. You've seen a bit of that already come into play there. And if we start to see this continue upwards and that will be a continuation of this bullish pennant.
Watch the video for the full market news update
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