Aussie Spikes Up After RBA’s Interest Rate Decision, Nov 03, 2020

RBA Slashed Interest Rate to Record Low

Today RBA released interest rate decision and as expected cut the interest rate to 0.10 pct against 0.25 pct previous one. According to RBA Governor, recent economic data have been better than expected and the near-term outlook was better than it was three months ago. Moreover, the recovery is still expected to be bumpy and drawn out and the outlook remains dependent on successful containment of the virus only.

Key Elements declared by RBA are as follows:

  • a reduction in the cash rate target to 0.1 per cent
  • a reduction in the target for the yield on the 3-year Australian Government bond to around 0.1 per cent
  • a reduction in the interest rate on new drawings under the Term Funding Facility to 0.1 per cent
  • a reduction in the interest rate on Exchange Settlement balances to zero
  • the purchase of $100 billion of government bonds of maturities of around 5 to 10 years over the next six months
  • RBA expects the economy will grow by 6% in the current fiscal year through June 2021 and 4% in the following year
  • RBA has forecast that Australia’s jobless rate will peak at less than 8%, down from a previous estimate of 10%
  • Inflation is expected to be 1% in 2021 and 1.5% in 2022
  • RBA would not lift its benchmark cash interest rate until inflation reached its target band of between 2% and 3%

Technical Analysis:

AUDUSD: The Aussie remained volatile after RBA’s cash rate decision and reverses previous loss of early Asian hours too. The pair made intraday high at $0.7094 and low at $0.7028 marks. On the top side key resistances are seen at $0.7090, $0.7122, $0.7170, $0.7190, $0.7222, $0.7240 and $0.7290 mark respectively. On the other hand, a consistent close below $0.7026 will take the parity down towards key supports around $0.7002, $0.6969, $0.6922, $0.6861, $0.6833 and $0.6799 mark respectively.

Take a look and do trade wisely!
Good Luck

Tags
Share on facebook
Share on linkedin
Share on twitter
Share on telegram
Share on whatsapp
Unleash Powerful Trading Conditions with TP Global.

Recent Posts

Categories

Offices

305 Griffith Corporate Park, Beachmont Kingston, Saint Vincent & the Grenadines

Mail us

Drop mail at:
support@tpglobalfx.com

Contact us

Call or Whatsapp
+1 7754366970

Risk Warning: Forex and Contracts for Difference (CFDs) are leveraged products. Trading in these products is highly speculative and involves substantial risk. Please note that even knowledgeable and well-experienced investors can experience large potential losses as a result of trading in Forex and CFDs. Consequently, investors should be fully aware of all the risks involved when trading Forex and CFDs and accept all the negative consequences associated with such trading. Please always remember that trading in Forex and CFDs might not be suitable for all investors. It is desirable investors who would consider trading, to do so only with money that they can afford to lose. You are also recommended to seek independent financial advice if necessary. The content on this website does not constitute financial or investment advice. Any information herein is of a general nature and does not take into consideration your personal circumstances, investment experience or current financial situation. Apple, the Apple logo, iPod, iPad, iPod touch, and iTunes are trademarks of Apple Inc, registered in the US and other countries. iPhone is a trademark of Apple Inc. App Store is a service mark of Apple Inc. This site is run and operated by - TP Global Services Limited registered by FSA, St. Vincent and the Grenadines with Number 25274 BC 2019. Registered office: Suite 305, Griffith Corporate Centre, Beachmont, P.O.Box 1510, Kingstown Saint Vincent and the Grenadines

TP Global Fx Africa Limited is incorporated in Federal Republic of Nigeria under the Companies and Allied matters Act 1990 with registration number RC 1674202. The objects of the company are all subject matters not forbidden by Companies and Allied Matters Act 1990. To provide Electronic Platform through which clients can choose currencies, commodities, indexes, CFDs and other leveraged financial instruments to trade.

TP Global Services Limited is registered with NFA (National Futures Association) USA with Registration Number 0533098.

mappin at-sign phone close