All attention to AUD:  cash rate and RBA statement

All attention to AUD: cash rate and RBA statement

The Reserve Bank of Australia will make a statement and release the cash rate on Tuesday, June 2, at 8:30 MT time.

Instruments to trade: AUD/USD, AUD/CAD, AUD/CHF, AUD/JPY, AUD/NZD

A cash rate is the interest rate that a central bank such as the Reserve Bank of Australia (RBA) charges commercial banks for overnight loans. When the coronavirus pandemic broke out, the RBA cut the cash rate to its record low of 0.25%. Analysts expect that it won’t change for a long time. Firstly, negative rates won’t help because other countries tried it and it didn’t work well. So any government support can come only from quantitative easing. Secondly, the cash rate won’t go up either as the RBA promised not to raise the cash rate until it sees some progress towards full employment and inflation within the 2-3%. Why do traders care? They wait for RBA Rate Statement as it’s the way the central bank communicates with investors about the monetary policy. The Australian dollar is quite sensitive to the sentiment, that’s why it will be vulnerable to the tone of the central bank’s prognosis.

If the RBA keeps the rate unchanged and gives some dark forecasts, AUD may go down under pressure.

Otherwise, if the RBA is optimistic about future recovery, AUD can go up.

Check the economic calendar

AUD.jpg

TRADE NOW

Similar

ECB Key Rate is in Focus
ECB Key Rate is in Focus

ECB is ready to take the decision about the key rate. What to expect from officials? Oil prices are high, and economy indicators demonstrate the slowing down in the strongest European economies.

What Will the Fed Decide?
What Will the Fed Decide?

The Fed is going to take a decision about the interest rate. This is the crucial news for the following week. What's going on in the markets and what to expect?

So Much News to Follow This Week
So Much News to Follow This Week

Hello, and welcome to the last week of August. We found the best news and collected the most impactful events for you to stay on the top of the market. Let’s go!

Latest news

Fed’s Rate Pause and UK Inflation Slows
Fed’s Rate Pause and UK Inflation Slows

Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

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!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera