RBA keeps rates on hold but ominous signs for November
The Reserve Bank of Australia (RBA) left interest rates at 0.25%, a record low in its latest release on Tuesday. However, the bank hinted there will be further monetary easing in the future to help the Australian economy devastated by the coronavirus pandemic.
Most market participants expected the bank to keep rates on hold but the picture changes drastically for November's meeting where a higher percentage of economists surveyed by Bloomberg expect a rate cut to 0.1%.
The country is suffering its worst contraction since the Great Depression and all eyes will be on the government's annual budget release for the fiscal response in aiding the economy. Last month, the bank increased the size of its funding facility to 200 billion AUD.
The Australian dollar fell against most other currencies. Did you know that you can speculate on the direction of currencies like the Australian dollar using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets. Get started with a free demo trading account today!
How to trade the AUDUSD with Admiral Markets UK Ltd
If you are feeling bullish or bearish on the price of the AUDUSD currency pair, you can speculate on its price direction using CFDs. To get started, follow these five simple steps:
- Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in AUDUSD, or another instrument, at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.
Source: Admiral Markets MetaTrader 5 Web, AUDUSD, Weekly - Data range: April 27, 2014, to October 6, 2020, performed on October 6, 2020, at 7:09 am BST. Please note: Past performance is not a reliable indicator of future results.
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