Market Brief 5 September: Interest Rate Decision from Australia


There are three major events on the calendar today, two of which on the early hours of the day.

Australia

AUD 05:30 a.m. GMT + 1, RBA Interest Rate Decision (Sep) – interest rate decisions provide significant levels of volatility for the markets as their impact is long-term and affects directly the monetary policy of the country. Market analysts foresee no changes in the rates and thus projections are at 1.50%, same as last time. In case there is a change of the decision that comes out, this will stir up the markets. If there is a cut to the rate, this should influence the Australian dollar negatively. And, if the change results in an actual increase in the interest rate, this should send the currency higher (and in line with the established bullish movement).

AUD 05:30 a.m. GMT +1, RBA Rate Statement – the statement contains details of the interest rate decision result and the economic conditions that contributed to the outcome. Investors pay close attention to the statement as it can give clues as to future developments and following decisions by the Reserve Bank of Australia.

United Kingdom

09:30 a.m. GMT + 1, Services PMI (Aug) – the Services Purchasing Managers’Index is a key indicator of the levels of activity of purchasing managers in the service sector. 50 is the level that determines whether the sector is expanding (when above 50) or contracting (below 50). Projections for the month of August point to a minor decrease at 53.5 compared to 53.8 for the previous period. If the reading is higher than expectations, this should boost the value of the cable. And, conversely, if the result shows a striking weakness from expectations, this should be taken as a bearish sign for the pound.

 
Wishing you Happy and Successful Trading!

 
Risk Warning: The information above constitutes Marketing Communication and does not constitute Investment Advice or Investment Research. The content of the analysis represents the view of our experts on a generic basis, and do not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the analysis above has not been prepared in accordance with legal requirements designed to promote the independence of Investment Research. Readers using the above information should consider the possibility of encountering substantial losses. Therefore, UR Trade Fix Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the above analysis.”  Further to the above ,Forex Trading involves a substantial Risk of Loss and may not be suitable for all Investors. Please see our Website for details regarding UR Trade Fix Limited’s Trading Terms, Policies and Offerings.Read more.

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