Bitcoin seems to reverse up from the local dips. Are there enough reasons to buy it now?
Will the RBA support the Aussie?
The Reserve Bank of Australia announces the cash rate on Tuesday at 05:30 MT time.
Instruments to trade: AUD/USD, AUD/NZD, AUD/CHF, AUD/CAD
The interest rate in Australia has been reduced to the historical low of 0.1% during the last session. Previously, it has been lowered to 0.25% already due to the virus hit. Currently, there are some positive signs in Australia, boosted by the lifting of the restrictions in Victoria state. The quantitative easing program was recently expanded, and other key target rates, such as the three-year-bond yield, were kept in accordance with the cash rate reduction. While growth is expected in the third quarter for the GDP, the RBA board advised they are staying on high alert to aid the economy and make sure it sees no impediment for recovery. With the coming rate statement, we are not expecting a change in the rate itself. Rather, we will be looking for the “side” comments from the bank regarding the outlook and future policy plans. Positive moods will spur the AUD, while a dovish look will press on the Aussie.
- If the RBA sounds hawkish, the AUD will rise.
- If the RBA sounds dovish, the AUD will fall.
The US inflation will come out today at 15:30 GMT+3. Traders can’t wait to see the numbers as they will impact all the pairs with the USD!
The Federal Reserve will release its statement and announce its interest rate decision at 21:00 MT time. Then, at 21:30 MT time, the central bank will hold a press conference.
Bitcoin has broken above $41,000 for the first time since late May. Follow US Retail Sales at 15:30 MT time!
The United States will release retail sales and producer inflation (PPI index) numbers at 15:30 MT time on June 15.
Gold has plunged amid the stronger US dollar as investors await the Fed’s meeting this week.