Australia stock market may open higher on Wednesday because the future market trades higher and RBA believes that the low interest rate will stimulate economic growth at less 0.4%-0.5% in fourth quarter of 2017. If Australian GDP at 07.30 a.m. reaches the forecast, it may give positive for stock market and Aussie dollar. I think AUD/USD may swing by the factors of U.S. dollar: ADP nonfarm employment change at 20.30 p.m. and FOMC member speeches. Investor may keep listening to every FOMC member to see the possibility of rising interest rate in next Fed’s meeting.
Loonie broke the resistance level at 1.2900 after “Trading War” eased while Bank of Canada may hold interest rate unchanged at 1.25% and rate statement at 22.00 p.m. which will support Canadian dollar, if it expresses the good sentiment. I think USD/CAD may move follow the greenback strength. If U.S. dollar is stronger, USD/CAD may break the next resistance at 1.3000 points and rise to 1.3200 points. Furthermore, GBP/USD may fall lower to 1.3757 points. I also suggest focusing on U.K annual budget at 19.30 p.m. and U.S. crude oil inventory at 22.30 p.m. which may support Brent rise up, if it decrease.
After China shoot down cryptocurrency last September 2017, at the moment China is thinking about making its national trading platform. Wang Pengjie, а member of the Chinese People’s Political Consultative Conference (CPPCC), suggested that the People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC) should create a Blockchain and digital asset management “approval system,” as well as raised the possibility of establishing a digital asset trading platform at a national level.
By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.