The Australian GDP is expected to fall from 0.5% to -0.4%, but the RBA's actions may allow the AUDUSD to surmount any bearish pressures.
RBA
On this page, you will read about everything you need to know about the Reserve Bank of Australia (RBA) including its latest monetary policy decisions and market-moving speeches.
The Reserve Bank of Australia or the RBA is the central bank of Australia. It succeeded the Commonwealth Bank of Australia which was established 10 years after the country gained independence from the UK. It began managing the local currency in 1924, which was back then known as the Australian pound. Then in 1959, it was tasked as the monetary authority in charge of issuing banknotes in the country.
A Hawkish Central Bank
Given Australia’s export-oriented and commodity-driven economy, its inflation is relatively higher than in other countries. Consequently, managing the rate at which price increases have always been at the top of the RBA’s agenda. The central bank does not always make changes to its deposit rate.
Central Banks We cover for you: RBA –RBNZ –SNB – SARB –CBRT –Norges Bank –Riksbank – BOE –FOMC –BOJ– ECB.
However, remarks on inflation are always enough to spark volatility on the Australian dollar. The RBA has been characterized as a hawkish central bank which means that markets see it as being sensitive to inflationary pressures.
The RBA’s Mandates
When the central bank adopted a freely-floating exchange rate in 1983, ensuring that exchange rates were trading at levels sustainable to growth also become a priority.
Along with the RBA’s list of mandates is also aiming for full employment or the level at which there is a balance between unemployment and inflation.
The central bank is composed of two boards. One, the Payments System Board, ensures that there is financial stability and that payment systems in the country are efficient. Meanwhile, the Reserve Bank Board is the decision-making body that dictates where interest rates should go. The board is made up of nine members, including the Governor.
It is tasked with adjusting money supply in the economy that aligns with the central bank’s mandates. They then announce their monetary policy decisions 11 times per year.
Who Heads the RBA?
Since 2016, the Reserve Bank of Australia has been headed by Philip Lowe.
RBA News and Analysis
AUDUSD Unchanged as RBA Kept Rates Steady; Here are the Levels to Watch Out For
AUDUSD Falls to Critical Support as RBA Governor Lowe Hints at the Possibility of Further Easing
AUDUSD Pares Gains from RBA Meeting Minutes on Concerns Over Chinese Tariffs
AUDUSD has pared all of its gains after it rallied to a high of 0.6550 following the RBA Meeting Minutes. With Australian policymakers expressing concerns over tariffs imposed by China, could we soon see AUDUSD drop?
AUDUSD Leads Gains Despite Dismal Economic Forecasts from the RBA
AUDUSD Slightly Bullish After the RBA Kept Rates Steady and Rolled Back Its QE
RBA Rate Decision Preview: Statement May Swing AUDUSD
The markets expect the Reserve Bank of Australia (RBA) to keep rates on hold at 0.25% for the next three years, as indicated by the RBA Governor himself in an earlier statement. Therefore, the emphasis on tomorrow's event is the RBA statement. The RBA has traditionally held a 4.5% unemployment...
Australia CPI Preview: What It Means for the AUDUSD
The AUDUSD comes into focus once more with the Australia CPI for the March quarter of 2020 scheduled for release on Wednesday at 1.30 am GMT. This is the first Australia CPI data which to showcase the coronavirus pandemic as it affects the prices of goods and services on the consumer end of the table in Australia.
Market Brief: Asian Stocks Steady; AUDUSD Plunges on RBA Emergency Rate Cut Expectations
Asian Equities Steadier Today Japanese and Australian stocks posted modest gains in today’s trading after a few days of aggressive selling. The Nikkei 225 was up by 0.06% at 17,011.46. Meanwhile, the ASX 200 had a 5.83% profit for the day at 5,293.4. Meanwhile, the Hang Seng Index is still...
AUDUSD Continues Plunge As Markets Anticipate Action from RBA
The AUDUSD has extended its capitulation from coronavirus-induced risk-off sentiment, even as markets now eye the Reserve Bank of Australia (RBA) for expected action. This follows a weekend that saw coordinated interest rate cuts by the Bank of Canada, Bank of Japan, the Federal Reserve and the Reserve Bank of [...]
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