Australia, Canada, and EU Attempt to Steal the Fed Monetary Policy
Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Australia to release quarterly CPI
What will happen?
Australian Bureau of Statistics will release the quarterly change in Consumer Price Index on April 27, 16:30 GMT+3. This is Australia's most important price data because central banks use it for setting the inflation target. This release is considerable for all AUD related pairs, like AUDUSD and EURAUD.
Why is it important?
The official measure of consumer price shows economic health in the country. Much of the increase in prices happened due to a clash between strong demand and Covid-disrupted supply chains. High numbers in this quarter could prompt the Reserve bank of Australia (RBA) into rates lift-off in the middle of a federal election campaign at their May meeting. Most of the time, rate hikes are positive for the currency. In January, the last CPI release caused a massive volatility spike, moving AUDUSD lower and higher by hundreds of pips.
How to trade on Australia's CPI release?
Higher-than-expected numbers will boost the AUD. Moreover, AUDUSD may fly to its last local highs at 0.7650.
- If the actual number is higher than expected – AUD will rise
- Otherwise – AUD will slide lower.
Check the economic calendar
Instruments to trade: AUDUSD, EURAUD, AUDJPY
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FED and BOE Make Another Attempt to Beat Inflation
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Will the UK and US Cope with Inflation?
Every week we expect many interesting events that can shake the market.
