Currency markets are hovering at key technical support and resistance levels waiting on the next Central Bank comment or key economic data number to set off the major money players.

Monday was frankly a bit of a yawn with Aussie Retail Sales for February meeting market estimates and US Durable Goods orders coming in better than expected. The markets remained relatively benign with stock markets a little lower and traders lacking conviction. Sadly with the US Fed March meeting only a week away financial markets could go into a hibernation type mode as they often do leading up to such an important Central Bank decision.

Tuesday and Wednesday from a big picture perspective won’t offer traders much to cling onto either with a real “flavour of the week” yet to raise its head. The market expects a rate hike in March from the US Fed, that’s now an 86% probability according to futures markets, what is more important however is how many times the US Fed raises rates this year and if the US Fed announce on March 15th that more than 3 hikes can be expected in 2017. If that was to be the case then we would see a substantial lift in volatility on global markets.

The RBA will announce its monthly policy statement today and with the recent rally in commodity prices and better than expected GDP figures, it will be hard for the RBA to ignore the stronger than expected numbers. The RBA doesn’t want to mention the potential for higher interest rates in the future as this will only put a rocket under the AUD so it will be a delicate balancing act today for the RBA. Don’t expect any rate adjustment, the devil will be in the detail of the statement which is released at 2.30pm AEDST. Expect to see increased volatility on the AUD at this time.

About the Author: Andrew Barnett

Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular key-note speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).

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The post Today’s Key Market Drivers – 7th March 2017 appeared first on LTG GoldRock.