2016-10-31 15:29:41

Tuesday will be a very volatile day for the AUD, as a lot of important statistics will be released on this day: at 04:00 and 04:45 (GMT+3) Chinese macro-economic data including business activity index in the manufacturing and service sectors in October); at 06:00 - interest rate decision by the Bank of Japan and a press conference. Economies of China, Japan and Australia are closely related. China and Japan are the biggest importers of the Australian commodities, such as iron ore and liquefied natural gas and At the same time high-tech products are imported to Australia from these countries. Macro-economic data of China and interest rate decision by the Bank of Japan will also have a strong influence on price of the Australian currency.

At 06:30 - interest rate decision by the RBA will become known. Currently the rate is at the level of 1.5%. It is expected that the rate will be left at the same level. In the comments after the meeting the RBA may indicate future prospects for the monetary policy. If the RBA shows hawkish attitude, it will increase probability of the rate hike at the next meeting, which is a positive factor for AUD.

At 17:00 – US important macro-economic data.

No matter what decision will be taken by the RBA, on Tuesday volatility in the pair AUD/USD will be high. Note, however that the Australian dollar remains one of the most popular and stable currency in the world.

Current interest rate in Australia is 1.5% and which is one of the highest level in the world among the countries with the advanced economies. The Australian economy of is one of the most stable in the world, which maintains high level of purchase of the Australian currency and assets.

Many economists believe that the rate in the country will remain at the current level of 1.5% until mid-2017. This fact also supports the Australian dollar.AUD/USD: Interest rate decision by the RBA.  Fundamental analysis for 31/10/2016