Created
: 2024.05.07
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Forex Today: RBA maintains policy settings, markets keep a close eye on comments from central bankers
World FX news
Breaking news
Forex Today: RBA maintains policy settings, markets keep a close eye on comments from central bankers
New
2024.05.07 14:55
2024.05.07 14:55
2024.05.07 14:55
Here is what you need to know on Tuesday, May 7:
The Australian Dollar (AUD) weakens against its rivals early Tuesday as investors assess the Reserve Bank of Australia's (RBA) monetary policy decisions and comments from Governor Michele Bullock. Eurostat will release Retail Sales for March and the US economic docket will feature Economic Optimism and Consumer Credit Change data. Meanwhile, investors will continue to pay close attention to comments from central bank officials.
The RBA left the policy rate unchanged at 4.35% as anticipated after the May policy meeting. In its policy statement, the RBA noted that inflation continued to moderate, albeit at a slower pace than expected. In the post-meeting press conference, RBA Governor Bullock said that the interest at the current level should bring inflation back to target and added that she doesn't think that it will be necessary to tighten the policy again. AUD/USD stays under bearish pressure in the early European morning and was last seen losing 0.3% on the day near 0.6600.
Bullock Speech: RBA Governor speaks on policy outlook after holding interest rate.
Australian Dollar PRICE Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the weakest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.05% | -0.12% | -0.40% | -0.11% | -0.35% | 0.00% | -0.10% | |
| EUR | 0.05% | -0.07% | -0.33% | -0.05% | -0.27% | 0.04% | -0.05% | |
| GBP | 0.12% | 0.07% | -0.27% | 0.03% | -0.20% | 0.12% | 0.02% | |
| JPY | 0.40% | 0.33% | 0.27% | 0.29% | 0.03% | 0.42% | 0.26% | |
| CAD | 0.11% | 0.05% | -0.03% | -0.29% | -0.22% | 0.09% | -0.01% | |
| AUD | 0.35% | 0.27% | 0.20% | -0.03% | 0.22% | 0.35% | 0.21% | |
| NZD | -0.00% | -0.04% | -0.12% | -0.42% | -0.09% | -0.35% | -0.11% | |
| CHF | 0.10% | 0.05% | -0.02% | -0.26% | 0.00% | -0.21% | 0.11% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
The US Dollar (USD) Index closed the first trading day of the week virtually unchanged as the improving risk mood made it difficult for the USD to gather strength. Early Tuesday, US stock index futures trade mixed and the benchmark 10-year US Treasury bond yield stays below 4.5%.
EUR/USD fluctuates in a tight channel slightly above 1.0750 in the European session on Tuesday after posting small gains on Monday.
GBP/USD closed in positive territory for the fourth consecutive day on Monday but struggled to preserve its bullish momentum during the Asian trading hours on Tuesday. The pair was last seen trading with marginal losses on the day near 1.2550.
USD/JPY rose more than 0.5% on Monday and extended its recovery to the 154.50 area early Tuesday. Japan's top currency diplomat, Masato Kanda, reiterated on Tuesday that the Japanese government may take the necessary steps to deal with excessive market volatility but refrained from commenting on foreign exchange levels.
Gold benefited from retreating US yields and escalating geopolitical tensions, gaining nearly 1% on a daily basis. XAU/USD stays relatively quiet at around $2,320 in the European morning.
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment - whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) - is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia's largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia's largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
Last updated
: 2024.05.07
Related articles
NZD/USD Price Analysis: Bulls assert dominance, closes its best week of 2024
2024.05.18 07:06USD/JPY Price Analysis: Extends gains but remains below 156.00
2024.05.18 05:44USD/THB plunges and approaches the 100-day SMA, USD cushioned by Fed officials
2024.05.18 04:52USD/NOK with light losses on quiet Friday, cautious Fed supports the USD
2024.05.18 03:05Canadian Dollar sticks to the middle on tepid Friday
2024.05.18 02:33Mexican Peso hits four-week high on hawkish Banxico remarks
2024.05.18 02:25
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
NZD/USD Price Analysis: Bulls assert dominance, closes its best week of 2024
In Friday's session, the NZD/USD rose to the 0.6137 level, demonstrating a strong bullish trend.
New
2024.05.18 07:06USD/JPY Price Analysis: Extends gains but remains below 156.00
The USD/JPY extended its gains late on Friday's North American session, though it's set to finish the week unchanged.
New
2024.05.18 05:44WTI pushes into fresh weekly high late Friday as Crude oil recovers ground
West Texas Intermediate (WTI) rose in late-day bidding on Friday as Crude Oil markets recover, but still remains within recent consolidation levels.
New
2024.05.18 05:31USD/THB plunges and approaches the 100-day SMA, USD cushioned by Fed officials
The USD/THB continued to lose ground on Friday despite the cautious tone seen in the latest Federal Reserve (Fed) officials' words.
New
2024.05.18 04:52Gold price surges above $2,400, eyeing all-time highs
Gold's price skyrocketed during the North American session ahead of the weekend as XAU/USD traded above $2,400, posting gains of more than 1.5% amid higher US Treasury bond yields.
New
2024.05.18 04:27Dow Jones Industrial Average adrift on quiet Friday volumes
The Dow Jones Industrial Average (DJIA) is on the high side as markets wind down a hectic trading week that saw rate cut hopes return to the forefront after US Consumer Price Index (CPI) inflation eased to a three-month low.
New
2024.05.18 03:12USD/NOK with light losses on quiet Friday, cautious Fed supports the USD
The USD/NOK stands mildly down on Friday with the Greenback holding its ground thanks to the cautious tone of the Federal Reserve (Fed) officials.
New
2024.05.18 03:05Canadian Dollar sticks to the middle on tepid Friday
The Canadian Dollar (CAD) is trading softly on a low-volatility Friday, sticking close to the midrange.
New
2024.05.18 02:33Mexican Peso hits four-week high on hawkish Banxico remarks
The Mexican Peso continues to record gains versus the US Dollar, refreshing its four-week high as the rally continued.
2024.05.18 02:25US Dollar stands neutral as Fed officials remain cautious
The US Dollar Index (DXY) is currently trading at 104.50, maintaining a neutral stance.
2024.05.18 01:47Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
