Trading volatility: AUD/USD on RBA rate decision
The RBA's interest rate announcement on 7 November could provide volatility around AUD/USD. The pair has seen upward creep of late in part due to the drop in the US dollar but also on expectations that the RBA will raise rates.
(Video Trancription Summary)
What will the RBA decide?
In this video, IGTV host and financial analyst Jeremy Naylor talk about the potential impact of the interest rate decision by the Reserve Bank of Australia (RBA) on the Australian economy. Bank governor Michelle Bullock has made it clear that she is against inflation.
The International Monetary Fund (IMF) has also warned that inflation could go up in Australia. Because of this, people think that the RBA might raise interest rates.
Aussie on the up after bad news in US
The Australian dollar has been doing well and became visibly stronger following the news of a lower-than-expected job creation rate in the US. Right now, it's worth about 65 cents, but some people think it could go up to 68.92 cents.
There's a good chance that if the RBA makes a comment that suggests they are really serious about keeping inflation down and they raise interest rates from 4.1% to 4.35%, more people will want to use the Australian dollar. This could make the Australian dollar even stronger.
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