The main focus of traders will be on US inflation at 15:30 GMT+3. Analysts expect the huge spike of the US inflation.
Will the RBA support the AUD?
The RBA’s interest rate is announced on Tuesday at 05:30 MT time.
Instruments to trade: AUD/USD, AUD/NZD, AUD/CAD, AUD/JPY
Since March 2020, the interest rate in Australia has been held steady at 0.1%. The RBA was committed to making the financial environment as favorable as possible. It was trying to make sure that all the lending facilities and credit functioning see no impediment across the country amid the virus struggle and reappearing restrictions. The Board’s plan is to keep the rate at 0.1% until the inflation reaches 2-3%. The latter would indicate that the Australian economy is warmed enough to raise the rates. Therefore, on Tuesday, we are going to see what the economic outlook in the country looks like and whether the recovery is going at an acceptable pace.
- If the RBA’s tone is hawkish, the AUD will rise.
- If the RBA’s tone is dovish, the AUD will fall.
The United States will release the weekly Initial Jobless Claims on May 13, at 15:30 MT time
The United States will publish a monthly Inflation Rate and Core Inflation Rate on May 12, at 15:30 MT time.
What's moving markets on Friday? Read in the fresh report!
Elon Musk, Tesla’s founder and CEO, said the company wouldn’t accept Bitcoin as payment any longer. As a result, BTC/USD dropped to $45,300, the low unseen since March.
The USA will post Retail Sales and Core Retail Sales on May 14, at 15:30 MT time.