The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.
What Will Australian Cash Rate Bring?
What will happen?
The Reserve Bank of Australia will make a statement about the cash rate on April 5, at 07:30 MT. This release comes out on every first Tuesday of a month. The cash rate is charged on overnight loans between financial intermediaries. This is a major event for AUD.
Possible AUD moves
According to the RBA last statement, the cash rate might rise if not for the obstacles that delayed it. In particular, the war in Ukraine brings more uncertainty. Despite the Australia’s economy remains resilient, inflation rose faster than the RBA expected. Nevertheless, it remains lower than in many other countries – now it’s 4%. More hawkish steps are planned for 2023.
After the March 1 release, the AUD went up. That day AUDUSD jumped by about 0.50%.
How to trade on the Australian cash rate release?
If the Actual reading is better than the Forecast, then it’s good for the currency. Therefore, a surprise rate hike will propel AUDUSD. Moreover, the AUD will get higher if the RBA is optimistic about the national economy. Conversely, if the RBA is cautious and doesn’t hint at the upcoming rate increases, the AUD will move down. Overall, not only Australia but also the other countries contemplate hawkish steps. Thus, the upcoming release is essential as the RBA may offer clues on its future decisions.
Check the Economic Calendar.
Instruments to trade: AUDUSD, AUDCHF, AUDNZD, AUDJPY
The US Bureau of Labor Statistics will announce average hourly earnings, nonfarm employment change (NFP), and the unemployment rate on May 6, at 15:30 MT time.
The Bank of England will publish its Monetary Policy Report and Summary, Official Bank Rate, and its votes on May 5 at 14:00 MT.
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.
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.