Is the Aussie priced correctly? RBA decision expected this week
Australia’s Interest rate Decision-day is this Thursday, 6 April. What will the RBA do with the rate, you ask?
This week ahead: Interest Rate Decisions, GDP
We’ve seen risk-on in currency markets recently, with many pairs against the U.S Dollar rallying on confidence that the economy will fare better in 2021. GBP/USD. Broke 1.40, while NZD/USD and AUD/USD both broke 0.78 and 0.73, respectively. Oil has been rallying on supply restriction due to middle east tensions and the snowstorm currently taking over Texas. Here is your week ahead.
NZD/AUD – Battle Of The Interest Rates
NZD/AUD is approaching a robust congested area at around 0.925. A downwards channel sees a possible move further lower may see the pair come a level below 0.9. However, an action lower will be dictated on which economy puts the brakes on monetary stimulus first.
This week ahead: CPI, NFP & RBA Interest Rate Decision
As Europe enters into the late stages of their respective lockdowns, it looks like the Coronavirus story may be starting to reach its end. Worldwide cases have started to plateau, with only a couple of countries where the Coronavirus cases continue to rise. For example, the United States broke the grim record of 200,000 cases per day, and Brazil’s cases continue to increase. This week ahead contains a plethora of data releases from various countries, so stay tuned.
Week ahead – Central Bank speeches, CPI’s
This week is relatively light regarding data coming out from countries. However, investors and traders will be focusing on one essential item – clarification on the Pfizer vaccine’s efficacy and timeline. Anthony Fauci stated that the Pfizer vaccine has an “extraordinarily high degree of efficacy – more than 90%, close to 95%” and that the U.S. may begin offering the vaccine to priority groups at the end of December. This hope of a vaccine before year-end boosted risk on sentiment last week. But further clarification of the vaccine’s timeline may solidify its move upwards, not to mention an additional step back to normalcy in the world.
RBA Slashes rates to 0.1%
As predicted by many analysts, the Reserve Bank of Australia has slashed rates from 0.25% to 0.1%, a 15-point cut. Furthermore, they’ve decided to buy back over $100 Billion government bonds of maturities around 5 to 10 years over the next six months.
Is the future for the Australian dollar downwards?
AUD/USD has been a strong performer in the currency markets, returning just under 30% since its March lows. We talked about how the Australian dollar was poised for a rally on a market recovery earlier this year.
Week ahead – Nonfarm Payroll, RBA Interest rates
Busy week ahead as September kicks in. As New Zealand and the United States elections slowly approach, the Coronavirus pandemic will most likely be the center focus for many parties and how they handle the post Coronavirus world. Here is your week ahead.
UK CPI, Japan GDP – Week ahead
There will be a week ahead post where the data being released will revolve around how well the economy chugging along, and analysts will argue whether a country has reached its peak or whether the NASDAQ is undervalued at 40 times earnings. However, this week
