Forex trading plan for August 19
Wednesday is going to be an important day for the US dollar. We will be watching the inflation data and the FOMC meeting minutes. The US currency could get fundamental support from the Chinese economic developments and the commodity rout extension.
GBP/USD has finally tested the levels above 1.5700 after the upbeat UK inflation releases. CPI added 0.1%, while the core CPI surged to 1.2% (5-months high). Price growth raised hopes for the BOE rate hike in the near future. Fix above 1.5700 would open the way to our next target of 1.5790.
There are no important releases to watch in the euro area until Friday. Meanwhile, EUR/USD is testing the 1.1050 support as we write (100-day MA). Fix below would trigger a move to 1.0820. Fed’s expectations will play the biggest part in the coming days.
RBA meeting minutes released on Tuesday showed the central bank is satisfied with the AUD depreciation. We see space for more downside in the coming sessions. China’s risks will influence the Aussie, so the pair AUD/USD targets 0.7315.