The Reserve Bank of Australia has paved the way for action in its November meeting after the RBA Assistant Governor, Christopher Kent, said there is a need for a supportive policy for some time to come. In its latest Monetary Policy Meeting Minutes report, the bank highlighted that the strength of the Australian dollar and the drag on the economy from Victoria's lockdown support the case for more easing.
Economists believe that this easing will take place via an interest cut from 0.25 per cent to 0.1 per cent, as well as a commitment for large scale bond purchases in additional quantitative easing measures. In a speech last week, the RBA Governor Philip Lowe signalled that interest rates would stay low for at least three years.
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The Australian dollar fell significantly on the news and was down against all other major G7 currencies, apart from the New Zealand dollar. The AUDUSD exchange rate rose nearly 35% higher from its March low to its September high. It is now around 5% lower from its September high as traders prepare for an interest rate cut.
How to trade AUDUSD with Admiral Markets UK Ltd
If you are feeling bullish or bearish on the price of AUDUSD 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, Monthly - Data range: Oct 1, 2006, to Oct 20, 2020, performed on Oct 20, 2020, at 6:53 am BST. Please note: Past performance is not a reliable indicator of future results.
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