Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Is Australia Ready for More Hikes?
What will happen?
The Reserve Bank of Australia (RBA) will release its interest rates and make a statement on August 2, 7:30 GMT+3. The statement is a detailed economic outlook that gives projections for the following months. That’s why this is Australia’s most significant economic release.
How will the AUD react?
As the world is under high inflation, currency prices are influenced by rate hikes before the hikes actually happen. Only a bigger-than-expected rate increase may become a potent bullish factor for the AUD.
Last time, the RBA raised the rate by 50 basis points as expected. The AUDUSD pair lost 1300 points after the release. With a 1-lot trade, you would have earned up to $1300.
How to trade on the RBA statement?
- If the bank raises the rate more than expected, the AUD will soar.
- Otherwise, the AUD will likely fall.
- Beware of trading before the news come out because volatile price swings may lead you to severe losses.
Check the Economic Calendar.
Instruments to trade: AUDUSD, AUDJPY, AUDCAD.
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
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.
Every week we expect many interesting events that can shake the market.