News and economic event analysis disclaimer: This fundamental report is not advice or a recommendation to trade or invest, it is educational and general information only. Don’t blindly buy and sell the markets/products discussed in this article, do your own research and be aware of the risks and rewards.
AUD Main Focus This Week:
- Economic Data Type: Minutes RBA Meeting
- Server Time: Tuesday, 1.30
- Quick view: After two weeks of interest rate decision-making by the Australian central bank, minutes of meetings will be issued this week. Analysts and investors will see more detail about the rate decline decision report.
Quick View: Dovish
- Reserve Bank of Australia (RBA) lowered its interest rate by 25 basis points to 1.25% as market expectations.
- The next RBA meeting is July 2, 2019.
- RBA’s central economic data focuses on GDP, Unemployment and CPI.
- This is the first interest rate cut in nearly three years due to slower inflation and slowdown in domestic and global economic growth.
Main Economics Data of RBA
- Australia’s GDP grew by 1.80 in the first quarter of 2019 compared to the corresponding quarter of the previous year, down from 2.3% in the previous quarter.
- Australia’s consumer price inflation slowed to 1.3% in the first quarter of 2019 from 1.8% in the previous quarter and below the 1.5% target.
- The adjusted unemployment rate in Australia rose to 5.2% in April 2019 from a 5.1% increase in the previous month and slightly above the market expectation of 5.1%.
Expected Bias: AUD Bearish
- The unemployment rate rose to 5.2% from 5.0%.
- RBA lowered interest rates with relatively dovish statements.
- Australia’s domestic employment data support RBA’s action to lower interest rates this July.
- An unexpected decline in fixed asset investment and China’s industrial production.
- The market predicts the minutes of the RBA meeting tomorrow is bad.