April 3 – Economic Events Outlook – Trading the RBA’s Cash Rate
Arslan Butt • 2 min read
The market is likely to remain volatile today as most of the investors will are back from the Easter holidays. Today’s main event is the Australian Cash Rate as the only event likely to shake the market during the Asian session. Let’s make some profits today…
Watchlist – Top Economic Event
Eurozone – EUR
German Retail Sales m/m
Investors are advised to watch the German Retail Sales at 6:00 (GMT). This is the primary gauge of consumer spending, which accounts for the majority of overall economic activity. Logically, a higher number of sales represents higher demand for goods & services. As per the law of demand, the increase in demand causes an increase in prices. The increase in prices is called inflation and the ECB is striving to boost the European Inflations.
Retail sales are expected to rise by 0.7% vs. -0.7% in Feb.
Australian Dollar – AUD
The king of economic events today. Investors will be monitoring the RBA (Reserve Bank of Australia) interest rate decision at 4:30 (GMT). The RBA has not changed its cash rates since 2016 and is expected to keep the rate on hold at 1.50%. The Aussie is likely to make a bearish move in the case of a 1.50% cash rate.
RBA Rate Statement
Phillip Lowe will likely continue asserting that the high value of the currency burdens on reaching the inflation goal. Any change in the tone may move the Aussie. But, expectations are very low for any kind of move led by a change in monetary policy.
The RBA’s remarks on lifting short-term funding costs, trade wars and the fresh drop in the iron ore rates will be watched.
Great Britain Pound – GBP
Markit is due to release the manufacturing figures at 8:30 (GMT). The market typically moves up to 60 pips on the release of Manufacturing PMI, mostly when the data shows a huge divergence. For the moment, the manufacturing PMI is expected to drop from 55.2 to 54.8.
Summing Up – Most of the investors are likely to stay out after trading the Australian Cash rate and UK Manufacturing PMI until the NFP on Friday. Keep following strict money management strategies today as the market could get highly volatile. Have a profitable day!