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Trade on the comments by the RBA
The Reserve bank of Australia is scheduled to make its rate statement on February 5 at 05:30 MT time.
We expect the central bank of Australia to keep its interest rate unchanged at a record low of 1.5%. However, the RBA may provide some hints on the future path of its monetary policy. Previously, the RBA suggested the possibility of the rate cut. However, the recent comments by the RBA members provided the possibility of the rate hike. Up to this time, financial markets are unsure about the next step by the RBA concerning its interest rate. If the bank confirms the rumors on the possible rate hike, it will be good news for the AUD.
• If the RBA is hawkish, the AUD will go up;
• If the RBA is dovish, the AUD will go down.
The ECB statement and US unemployment claims will be out today. How the market will react?
The European Central Bank will publish the last statement of the year on December 10, at 14:45 MT time.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.