A week of central bank decisions.

With a quiet data docket today, Its difficult to form a conviction in the direction of the currencies as we await a slew of central bank interest rate decisions. Starting with the RBA and BOJ during Tuesdays Asian session, followed by the FED on Wednesday. Then the BOE and Swiss Bank (SNB) (the CHF isn't a currency I trade but the outcome could have an effect on the EUR in particular).

The RBA will be an interesting one, particularly considering noises have been made about a potential hike. But if you remember last month, similar noises coming out of New Zealand didn't come to fruitian. And a similar 'dovish hold' could disappoint Aussie bulls and weaken the AUD.

Of course, anything from Australia could be overshadowed by the BOJ. Where I have absolutely no idea what to expect. The market is convinced something will happen, whether the end of negative interest rates or abandoning yield curve control. As we know, the BOJ have a habit of kicking the can down the road. Whatever happens, I would be surprised if the outcome doesn't create volitility.

Regarding the FED decision on Wednesday, I need to see the reaction to the BOJ decision before forming an opinion on the potential outcome. So, for now, my decision to be an interested observer and hopefully a trade will fall into our lap once the dust has settled.

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