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Will the RBA Add Strength to the Aussie?
What will happen?
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3). While we don’t expect any changes to the interest rate that is currently held at 0.1%, the statement itself may be interesting. The main focus will be on the yearly outlook by the bank given surging inflation (3.8% in the 2nd quarter) and the coronavirus situation in Australia.
How to trade on the RBA Interest Rate Decision?
It’s highly important to follow the statement that may contain changes to the bank’s monetary policy.
- If the bank improves outlook and hints at rate hikes, the AUD will go up;
- If the regulator is cautious, the AUD will slide.
Instruments to trade: AUD/USD, AUD/JPY, AUD/NZD
The US Bureau of Labor Statistics will announce average hourly earnings, nonfarm employment change (NFP), and the unemployment rate on July 8, at 15:30 MT time.
The Federal Open Market Committee, a committee within the Federal Reserve, will reveal a detailed record of the central bank’s last meeting on July 6 at 21:00 MT.
The Reserve Bank of Australia will announce its cash rate and make a statement about future rate policy on Tuesday, July 5, at 07:30 MT.