RBA’s hiked rate higher than expected

and other FX market news.

Contents

    What’s new?

    RBA increase rate by 0.25% to 0.35%, it is more than the 0.15% expected. Also it is first time on 15 years than RBA lift rate during election campaign. It send a cured message to market with a more aggressive approach to fight inflation. The central bank might increase the rate by 0.4% by June bringing the cash rate to 0.75% at the next meeting.

    BOE plans to hike again on Thursday meeting

    The Bank of England is expected to lift rate again at the Thursday meeting and bring the key rate to 1% in the global fight against inflation. On top of that BOE is the first major central bank to start unloading the accumulated purchased government debt during covid-crisis. The move will take BOE in unchartered territory.

    What’s in the pipe?

    • U.S. factory orders, durable goods, Tuesday
    • Fed rate decision, briefing with Chair Jerome Powell, Wednesday
    • EIA crude oil inventory report, Wednesday
    • Bank of England rate decision and briefing, Thursday
    • OPEC+ convenes virtually for a regular meeting, Thursday
    • U.S. April jobs report, Friday

    FX rates

    USD/JPY @ 130.91 - bullish trend

    EUR/USD @ 1.0519 - Bearish trend

    GBP/USD @ 1.2534 - Bearish trend

    AUD/USD @ 0.7107 - Bearish trend

    USD/CNH @ 6.6734 - Bullish trend

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