The most impactful releases of this week will fill the market with volatility and sharp movements. Be ready to take action!
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
Oil prices are rising and Russia banned the export of its petrol. What's happening in the markets?
Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.
In today's market insights, we delve into Citibank's oil price predictions, the evolving competition between Huawei and Apple, the Saudi Arabia-Tesla partnership, and the upcoming rate decisions from the world's major central banks.