Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
The RBA meeting is coming
The Australian dollar tested the lowest levels since January's flash crash below 0.68 on the risk aversion yesterday. Is there any hope for the aussie to recover? The answer is yes but at first, we need to wait for the Reserve bank of Australia's meeting today at 7:30 MT time.The central bank has made two rate cuts in June and July. This time, the interest rate is expected to remain steady at a record low of 1%. The inflation data came out in line with the forecasts, that is why the chances of a third rate cut are quite low. We need to pay attention to the tone of the statement and to the hints on the future rate cuts. Dovish comments by the RBA governor Philip Lowe will make the currency weaker. Pay attention to the 0.6745 level, which may be broken in that case. Otherwise, AUD/USD may reverse and reach the 0.6851 level.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Last week was super intense! Geopolitical turbulence made the Russian ruble the most volatile currency. Gold rose and fell by more than 8000 points each time.
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.