The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
How to Trade AUD after RBA Statement?
What will happen?
The Reserve Bank of Australia will announce its policy statement and gives an economic outlook on July 6 at 7:30 MT. Traders will await this event to get some clues on the outcome of the central bank’s future decisions. More and more banks are moving to a hawkish tone, but the RBA isn’t likely to join them this time as Australia experiences fresh virus outbreaks these days. Unlike the RBA, the Fed has claimed that it would cut bond buys in the coming months and raise rates earlier than initially thought. Therefore, we might expect a further weakening of the Australian dollar and strengthening of the US dollar, of course in case the RBA leaves policy unchanged.
How to trade on RBA Statement?
- If the central bank gives a positive economic outlook and hints on policy tightening sooner than 2024, the Australian dollar will rise.
- If the RBA concerns about economic growth and not ready to shift tightening earlier than 2024, the Australian dollar will fall.
Instruments to trade: AUD/USD, AUD/JPY, AUD/NZD
Australia will release employment change and an unemployment rate on Thursday, October 14, at 03:30 MT (GMT+3).
What will happen? Reserve Bank of Australia will announce the interest rate at 07:30 (GMT+3) on Tuesday, September 7…
Last week was full of surprises! Stock indices have shown significant growth…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).