ONLINE FOREX BROKER
2021-02-01 • Updated
What to expect? No changes, all attention to projections
The central bank is expected to keep its interest rate at 0.10% on Tuesday during RBA’s first meeting of the year. It’s worth mentioning that it’s already halfway through a six-month, $76.6 billion bond-buying program.
Australia has been showing a sustainable pace of recovery so far as recent data has been mostly better than expected. The labor market is rebounding and consumer sentiment is firming. Moreover, Australia was lucky to have China as its neighbor since China was the first country that got out of the Covid-19 crisis and returned to its pre-pandemic levels. Australian-Chinese close trade relationship will boost Australian GDP.
Therefore, analysts consider that the Reserve Bank of Australia may soon taper bond purchases. And if this really happens, the AUD will rise. For now, it’s too early to start lowering the QE program, but policymakers can give their projections of further actions. Investors will closely watch them.
Tug of war between house prices and exchange rate
But it’s not that simple as Australia is a relatively small figure in the world’s monetary marketplace, which means that if it’s first to taper bond-buying, it will risk a severe hit to exporters and jobs.
In other words, nor the USA neither Europe are nowhere close to ending its massive support for the economy. And if Australia decides to do the first move, the AUD will surge and Australia will lose its competitive advantage since its goods will be more expensive for buyers outside of it.
How to trade after RBA’s statement?
Technical tips
The weak performance of stocks pressed AUD/USD to a fresh 2021 low. However, AUD/USD has bounced off the lower trend line of the Bollinger Bands indicator near the 0.7600 mark. Since the downside is limited by the 50-day moving average of 0.7580, we would expect AUD/USD to rise further up. The breakout above the high of January 28 at 0.7700 will drive the aussie up to the high of January 26 at 0.7750. In the opposite scenario, the move below the support of 0.7580 will drag the pair to the psychological mark of 0.7500.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
China's economy is rocketing. On the other hand OPEC+ countries take the decision to cut the production. What will be the impact on the oil price?
The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.
|
