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Will the RBA support the AUD?
What will happen?
The RBA will announce its Cash Rate on April 6, at 07:30 MT time.
During the last session of the RBA, the Cash Rate was held steady at a record low of 0.1%. The Bank explained it was committed to keeping the rate at that mark until and unless the economy recovers to the inflation rate’s target range of 2 to 3%. The latter is far away from the current dynamic and is not expected to be reached earlier than 2024.
How to trade the RBA Cash Rate announcement?
Because of the above, no change to the rate is expected. In the meantime, what we will be looking for is the assessment of domestic economic dynamics and resulting actions from the RBA. The latter is ready to step in and adjust its bond purchases according to the situation. If the economic indicators are good, and no intervention from the RBA is required, it may be taken as an optimistic impulse that may boost the AUD.
- Optimistic/hawkish RBA tones may push the AUD;
- Weak outlook/dovish notes will press the AUD.
Instruments to trade: AUD/USD, AUD/CHF, AUD/CAD, AUD/JPY
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
The US will reveal Non-farm payrolls on January 7, Friday, at 15:30 GMT+2 (MetaTrader time).
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
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.