GBPAUD Offers Volatility Ahead of RBA Policy Meeting

The Reserve Bank of Australia meets for another policy meeting this week, and traders seeking volatility should consider the GBP v AUD pair. 

Sterling has had its woes after the latest stimulus plans from the government, but the Bank of England’s QE restart has boosted the pound.

GBPAUD – 4H chart 

gbpaud 4hour chart

The 4H chart shows that the 1.60 level provided a low before the BoE rally. Traders should look for a peak in the pound and a potential sell opportunity. 

The OECD expects Australian interest rates to hit an 11-year high in 2023 at 3.6 percent as inflation worsens. The international finance group is more worried about rising interest rates than the big Australian banks. 

The RBA has hiked rates over five consecutive months, taking the cash rate in September to a seven-year high of 2.35 percent.

“Further policy rate increases are needed in most major advanced economies to ensure that forward-looking measures of real interest rates become positive, and inflation pressures are reduced durably,” the group said. 

“Policy interest rates are projected to rise to 4.5 to 4.75 percent in the United States, 4.5 percent in Canada, and 4.25 percent in the United Kingdom in 2023, reflecting the visible labour market pressures in these countries, and 3.6 percent in Australia.” 

The RBA is expected to hike rates by 0.50% at Monday’s meeting. During the central bank’s previous meeting, Governor Philip Lowe said that the estimated neutral level was 2.50%, which would neither stimulate nor restrict economic activity. 

In a recent Reuters poll, over 70% of economists predicted the RBA would raise its cash rate by half a point to 2.85% this week. The remaining eight analysts forecast a smaller 25 basis point hike. 

“A lot of global interest rate expectations are being set in the United States,” said Tony Morris, head of ANZ economics at BofA. 

“If the Reserve Bank doesn’t maintain the current pace, then further currency weakness will feed through into a much faster pace of domestic inflation.” 

MPs warn UK prime minister Liz Truss she has days to reverse the controversial tax and welfare cuts. Failure in doing so would result in facing a party rebellion that could remove her before Christmas.

Recent News
Start Trading Now !

Try our demo account for free to learn trading. When you’re ready, switch to a live account and start trading for real.

Popular posts

ATFX

The Firm has taken the decision to cease providing services to retail clients, with immediate effect. We are therefore unable to accept any applications.

Services to professional clients will not be impacted. For professional applications please contact [email protected]

ATFX

使用限制

本网站的产品及服务不适合英国居民。网站内部的信息和素材不应被视为分销,要约,买入或卖出任何投资产品。请继续访问 https://www.atfx.com/en-za/

ATFX

使用限制

本网站的产品及服务不适合英国居民。网站内部的信息和素材不应被视为分销,要约,买入或卖出任何投资产品。请继续访问 https://atfxgm.eu/en/

ATFX

使用限制

本网站的产品及服务不适合英国居民。网站内部的信息和素材不应被视为分销,要约,买入或卖出任何投资产品。请继续访问 https://www.atfx.com/en/

ATFX

使用限制

本网站的产品及服务不适合英国居民。网站内部的信息和素材不应被视为分销,要约,买入或卖出任何投资产品。请继续访问 https://www.atfx.com/ar/

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/ar/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxgm.eu/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en-au/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/ar/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en-za/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for Hong Kong residents. Such information and materials should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制: 本網站的產品及服務不適合香港居民使用。網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxgm.eu/en/ to proceed.

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://www.atfxconnect.com/