News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • $EURUSD thwarted by support I think this'll break during Q4 - the next big support zone below runs from around 1448-1500 https://t.co/LnFGRIyfg3
  • 10-year US Treasury yields touching multi-week highs. EUR/USD is likely to re-test 1.1700 in the short-term. Get your $EURUSD market update from @nickcawley1 here:https://t.co/JBdGJ9iqhf https://t.co/hvLu72yDsD
  • This 👇 https://t.co/UH4A7C2HOO
  • $USDJPY has spanned its full, tight range. The has slightly broadened its smallest 30-day trading range (as a ratio of spot) on record. Serious breakout candidate should a firm risk or Fed rate speculation wind come through https://t.co/XyajC1dAee
  • Seems this once-Hawkish view from Cleveland Fed President Loretta Mester is becoming the consensus for the FOMC https://t.co/uHAmcRFNlG
  • - Supports November taper - Still some distance from maximum employment goal needed for raising rates
  • Fed's Mester - Economy has met substantial further progress bar for taper - On inflation bar for raising rates has largely been met - Expect conditions for first rate hike to be met by end of next year
  • Heads Up:🇬🇧 BoE Tenreyro Speech due at 13:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-24
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/HFl8E8exht
  • Credit Suisse dumped Evergrande exposure on risk fears - FT
Australian Dollar Volatile after RBA Cuts Rates as Expected

Australian Dollar Volatile after RBA Cuts Rates as Expected

Daniel Dubrovsky, Strategist

Talking Points

  • Australian Dollar dove initially after the cut, but quickly balanced its losses
  • The Reserve Bank of Australia cut rates 25 bps to a record low 1.50 percent as expected
  • The central bank expects the prospects for CPI returning to target have improved

Having trouble trading the Australian Dollar? This may be why.

The Aussie Dollar generated more volatility than follow through Tuesday morning in the after math of the Reserve Bank of Australia rate decision to cut its benchmark rate to a record low. Heading into the announcement, overnight index swaps were pricing in approximately a 70 percent probability that the central bank would reduce its main lending rate by 25 basis points (bps). A more dovish, 80 percent of economists polled by Bloomberg expected the same.

The central bank ended up following through with market expectations and cut the key interest rates to 1.50 percent from 1.75 percent – yet another record low among global monetary policy. According to the central bank’s statement, they noted that prospects for inflation returning to target and sustainable growth have been improved by the cut. It added that the rate reduction is not likely to worsen housing market risks.

In May, the RBA reduced its main lending rate after a dismal first quarter CPI reading of 1.3 percent. In June, the Reserve Bank of Australia said that an unchanged policy was consistent with inflation and sustainable growth returning to target over time. Then, as James Stanley pointed out, the RBA minutes from July’s monetary policy announcement showed that the central bank may have been more amenable to cutting rates.

Following this month’s RBA decision to cut, the markets are carrying through dovish forecast for further follow up by the group and a 98 percent probability that 2 reductions will occur within a year. Taking this into consideration, perhaps the meeting minutes that will be associated with this press release could reveal if the Reserve Bank of Australia will continue to be data dependent.

Want to learn more about the DailyFX SSI indicator? Click here to watch a tutorial.

Australian Dollar Volatile after RBA Cuts Rates as Expected

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES