RBA and May31 Rate Decision

Fundamentals:

The RBA in December's meeting was a hawkish stance. This suggests that going forward, their monetary policy will continue to be hawkish. Coupled with that, given the pandemic's effects on the Australian economy, the Australian government's fiscal policy will be at the forefront of their minds in stimulating their economy. This is a two for one punch and should have effects on the Australian currency.

Conclusions:
We have a country that is forced in a corner to take action by their own desire and resolve to prop up their economy. We have a situation where risk has the potential to prevail should the economy is able to recover from the lockdown measures that took place recently. We have a populace that is mobile, able and ready to work should the pandemic situation has improves. This is potentially, good news for the currency.

Trades:
AUDNZD and AUDUSD

İşlem aktif:

Yorum:

Typo: The title should be RBA and Jan 31 Rate Decision. :P

Yorum:

RBA decided to wait, but future expectations did not diminish.
Took some profit off the table for AUDUSD and buying dips on AUDNZD.