ANTIPODEAN CURRENCIES IN FOCUS AS THE RBA AND RBNZ DECIDE ON INTEREST RATES
ANTIPODEANS IN FOCUS
This week investors will look to key interest rate decisions from the Reserve Bank of Australia and the Reserve Bank of New Zealand. Economists largely expect the RBA to keep interest unchanged, however, the RBNZ interest rate decision and policy statement may provide a number of shocks. The RBNZ has a new Central Bank Governor, Grant Spencer, while the nation also has a new government, who are considered to be more fiscally dovish than the previous administration.
Traders should also watch out for key-note speeches from Bank of Japan Governor Haruhiko Kuroda, and Bank of Canada Governor Stephen Poloz. The Chinese economy also releases key inflation data, with PPI and CPI figures for October set to be released on Thursday.
Monday November 6th, BOJ Governor Speech
Bank of Japan Governor Haruhiko Kuroda, is set to hold a press conference about Japanese monetary policies in Tokyo, Japan. Governor Kuroda exercises general control over the Bank's business, he is also in charge of the nation's Internal Auditors Office.
The USDJPY pair remains bullish while trading above the 114.24 level, further upside towards 115.05 and 115.55 is expected above the 114.24 level.
Should the USDJPY pair fail to hold above the 114.24 level, further declines towards the 113.57 and 112.90 levels seem likely.
Tuesday November 7th, RBA Interest Rate Decision
The Reserve Bank of Australia policymakers come to a consensus on where to set the countries interest rate on Tuesday. Traders and investors watch interest rate changes closely, as short-term interest rates are the primary factor in currency valuation.
A higher than expected rate is bullish for the Australian dollar, while a lower than expected rate is bearish for the Australian dollar.
The Australian dollar is strongly bearish against the U.S dollar while trading below the 0.7710 level. Further declines towards the 0.7610 and 0.7579 levels remain likely.
Should price-action on the AUDUSD pair move back above the 0.7710 level, further upside towards 0.7748 and 0.7810 seem possible.
Wednesday 8th November, RBNZD Rate Decision
The Reserve Bank of New Zealand are widely expected to keep interest rates unchanged at 1.75 percent. If the RBNZ strikes a hawkish about the current inflationary outlook, and the economy, it should raise expectations of future interest rates hikes, and is seen as positive for the New Zealand dollar.
Should price-action on the NZDUSD pair move back above the 0.6980 level, further upside towards 0.7048 and 0.7110 seems most likely.
If the NZDUSD pair declines below the 0.6888 level, further losses towards 0.6847 and 0.6710 remains possible.
Thursday 9th November, Chinese CPI Inflation
The Chinese Consumer Price Index measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.
The Chinese economy also release PPI data, it measures the change in the price of goods sold by manufacturers. It is also a leading indicator of consumer price inflation, which accounts for the majority of overall Chinese inflation.
Friday November 10th, RBA Monetary Policy Statement
The RBA releases the central bank Monetary Policy Statement, which reviews economic and financial conditions, and determines the appropriate stance of monetary policy. It also and assesses the risks to its long-run goals of price stability and sustainable economic growth. It is considered as a clear guide to the future RBA interest rate policy.