Congratulations! Gold has just opened a new era... or, rather, reopened...
All eyes on AUD
Information is not investment advice
The RBA will make a rate statement on August 4 at 7:30 MT time.
Instruments to trade: AUD/USD, AUD/NZD, AUD/CHF, EUR/AUD
The Reserve Bank of Australia uses the rate statement as the primary tool to communicate with investors and give them hints on the future monetary policy. This time it will have a huge impact as the central bank will assess the current state of the Australian economy amid increasing number of virus cases. The country is suffering from the fresh resurgence of new infections, that’s why the government is forced to impose stricter restrictions. Also, officials will unveil guidelines on the economic recovery. This information will be important as Australia goes through the most severe economic contraction since the 1930s. It’s widely expected that the central bank will leave the rate unchanged at its record low at 0.25%, but it may scale up asset purchases to increase money flow to support the economy. In addition, pay attention on the overall tone of the RBA’s statement.
- If the RBA is optimistic and increases asset purchases, the AUD will surge.
- If the RBA is pessimistic and decreases asset purchases, the AUD will decrease.
Follow Canadian core retail sales on September 18 at 15:30 MT time!
The US dollar gained after the Fed’s report, while riskier assets dropped. Let’s have a closer look.
Keep an eye on the UK monetary policy statement on September 17 at 14:00 MT time!