Welcome to Tuesday!
|Meetings of the Reserve Bank of Australia always have a strong impact on the Australian dollar.|
|Australian cash rate remains at the record low of 1.5%, while other central banks around the world are starting a tightening cycle.|
|The RBA Governor Lowe has recently hinted that it’s “more likely” that interest rates will “go up than down”. Never the less, Australian central bank seems in no hurry to introduce higher rates. According to Lowe, flexible national currency allows the RBA to maintain independence in timing rate hikes.|
|If the RBA doesn’t give more details about the future rate increases at the meeting on October 3, the AUD will likely suffer versus other currencies, especially the EUR, the CAD and the USD. If the RBA turns more optimistic and hawkish, demand for the AUD will increase pushing its exchange rate higher.|
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
On Tuesday, gold rallied because uncertainty over the latest developments in Britain’s departure from the EU backed safe haven demand and traders looked ahead for American inflation data to underpin the Fed’s pledge to remain on hold…