Currency Call Mid-Day Update (02 August 2021) with LCMS Traders

Currency Call Mid-Day Update (02 August 2021) with LCMS Traders 

During today’s Currency Call, Gim Hong highlighted the following points:

Reserve Bank of Australia (RBA) may be holding back on QE tapering due to the recent spike in COVID cases during the monetary policy meeting tomorrow.

Doing so allows the RBA to have more time to evaluate the COVID situation and decide if QE tapering should be adopted.

The RBA may also increase QE amount although that may seem a bit aggressive.

Scott highlighted the following points:

The U.S. dollar index is currently trading around the 92 level.

Wait for the release of the U.S. ISM Manufacturing PMI data later at 2200 (GMT 8) and see how the dollar index reacts to it before looking for trade opportunities.

Jin highlighted the following points:

Wait for AUD/USD to test and reject the 0.74 level before looking for selling opportunities below the 0.7388 level.

Wait for NZD/USD to test and reject the 0.7013 level before looking for selling opportunities.

During the day, AUD/USD and NZD/USD strengthened slightly.

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Watch the full session of the Currency Call here:

Join the Daily Currency Call from Mondays to Fridays at 1100 (GMT 8).

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