Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Is all good with the AUD?
What will happen?
The RBA Rate Statement comes on June 1, at 07:30 GMT+3.
The Reserve Bank of Australia kept the rate steady at 0.1% during the last session. It’s planning to keep it there unless and until the actual inflation reaches 2-3% and the labor market corrects to maximum employment. Generally, the bank is committed to maintaining the financial conditions in the country as supportive as possible to ensure nothing stands in the way of the economic recovery.
How to trade the RBA Rate?
We don’t trade the rate itself as it’s likely to be kept unchanged. Rather, we’re going to trade the details of the Monetary Policy that the RBA will share. Generally, if they are largely optimistic, the AUD is likely to rise. Otherwise, a weak domestic economic outlook may press on the Australian dollar.
- Optimistic/hawkish tones support the AUD;
- Pessimistic/dovish tones make the AUD lose value.
Instruments to trade: AUD/USD, AUD/CHF, AUD/NZD, AUD/JPY
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.