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.
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.
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 is testing a critical resistance level after the RBA kept rates unchanged and made no mention of the Aussie's recent rise.
AUDUSD is leading losses among the major currencies after RBA Governor Lowe hinted at the possibility of further easing. He even mentioned negative rates!
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 is leading gains among the majors in today’s Asian session despite the RBA Monetary Policy Statement forecasting dismal projections for 2020.
AUDUSD is leading gains among the majors after the RBA keep its interest rates unchanged and scaled back its QE program. Here's what you need to know.
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...
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.
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...