The minutes of the RBA's November meeting released on Tuesday morning (17/Nov) revealed that the Australian central bank is ready to provide more stimulus if needed after cutting its benchmark interest rate to a record low. In its statement, the RBA noted that interest rates are already very low and it is unlikely to move them to negative.

In other words, the Australian central bank will disburse another stimulus package. The strengthening of the Aussie is also supported by the strengthening of the Australian dollar this time driven by rising risk appetite following news of Moderna Inc's success in testing a COVID-19 vaccine with an effectiveness of up to 94.5 percent.

The percentage is higher than the achievement of Pfizer's vaccine trial which caused a stir last week. This positive news also raised optimism among market players in the effort to end the pandemic that has been suppressing the global economy.

Today's Market Review includes:

  1. Gold prices have the potential to still be bought in the short term by market players amidst the ongoing sentiment of high Covid-19 cases and the weakening US dollar despite good news regarding vaccine developments. Today's focus will be on US economic data such as retail sales at 20:30 WIB and industrial production at 21:15 WIB.
  2. Oil prices have the opportunity to be bought in the short term due to the sentiment of the weakening US dollar and hopes for a vaccine that can trigger a recovery in demand. Furthermore, today the market will await the results of the OPEC ministerial committee meeting to find out their recommendations on the production limit agreement ahead of the OPEC+ meeting later this month.
  3. EURUSD has the opportunity to be bought if the dominant sentiment is a weakening US dollar and there is progress in Brexit negotiations.
  4. GBPUSD also has the opportunity to be bought in the short term on the back of the sentiment of the weakening US dollar and the market seeing progress in Brexit negotiations after pro-Brexit minister Dominic Cummings will resign.
  5. AUDUSD also has the opportunity to be bought in the short term after the Australian central bank in the release of its meeting minutes this morning confirmed that they would not make a negative interest rate policy and were more inclined to make bond purchases if necessary to support the economy.

Daily Pick

Today's prediction is on the GU pair (GBPUSD) which is predicted to continue its increase, and the recommended OP is BUY at level 1.32350

  • TP 1 = 1,32450 (10 point)
  • TP 2 = 1,32550 (20 point)
  • SL 1 = 1,32300 (5 point)
  • SL 2 = 1,32250 (10 point)

Always prioritize Money Management and Risk Management.

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