The current head of the Reserve Bank of Australia (RBA) is Michele Bullock. She is the Governor of the Reserve Bank and chairs both the Payment Systems and Reserve Bank Boards. Her seven-year term began on September 18, 2023 and Andrew Hauser is the Deputy Governor.
The current President of the European Central Bank (ECB) is Christine Lagarde. She took office on November 1, 2019.
Tomorrow we will have a strong fundamental data print from AUD and here is how the RBA's (Reserve Bank of Australia) decisions and statements could affect the EUR/AUD tomorrow, along with information on the RBA head
Rate Cut Expected: The majority of experts and economists surveyed anticipate the RBA will cut the cash rate at its February meeting. The forecast is for a cut from 4.35% to 4.10%.
Market Pricing: Markets are largely expecting this 25bp rate cut.
Rationale for Cut: This expectation is driven by underlying inflation falling faster than the RBA expected and weaker-than-expected household consumption growth.
Impact on AUD: A rate cut generally weakens the Australian dollar, This is because lower rates make the AUD less attractive to foreign investors.
EUR/AUD Impact: If the RBA cuts rates as expected, EUR/AUD is likely to rise. The euro would strengthen relative to the Australian dollar.
RBA Statements and Press Conference, The RBA's accompanying monetary policy statement and the subsequent press conference will be crucial.
Dovish Tone: If the RBA signals further rate cuts are likely, or expresses strong concerns about the economy, this would likely amplify the downward pressure on the AUD, leading to a greater increase in EUR/AUD.
Hawkish Tone: If the RBA attempts to temper expectations of further easing, or emphasizes its commitment to controlling inflation, this could provide some support to the AUD and limit the upside for EUR/AUD.
Data Dependency: The RBA has emphasized that it will continue to rely on data and the evolving assessment of risks. Any surprises in upcoming Australian economic data could shift expectations and impact the currency pair
In summary: The anticipated RBA rate cut is likely to put downward pressure on the AUD, which would cause EUR/AUD to increase. The magnitude of the move will depend on the RBA's accompanying statements and any surprises in upcoming economic data.
do you think they will go hawkish or dovish????
The current President of the European Central Bank (ECB) is Christine Lagarde. She took office on November 1, 2019.
Tomorrow we will have a strong fundamental data print from AUD and here is how the RBA's (Reserve Bank of Australia) decisions and statements could affect the EUR/AUD tomorrow, along with information on the RBA head
Rate Cut Expected: The majority of experts and economists surveyed anticipate the RBA will cut the cash rate at its February meeting. The forecast is for a cut from 4.35% to 4.10%.
Market Pricing: Markets are largely expecting this 25bp rate cut.
Rationale for Cut: This expectation is driven by underlying inflation falling faster than the RBA expected and weaker-than-expected household consumption growth.
Impact on AUD: A rate cut generally weakens the Australian dollar, This is because lower rates make the AUD less attractive to foreign investors.
EUR/AUD Impact: If the RBA cuts rates as expected, EUR/AUD is likely to rise. The euro would strengthen relative to the Australian dollar.
RBA Statements and Press Conference, The RBA's accompanying monetary policy statement and the subsequent press conference will be crucial.
Dovish Tone: If the RBA signals further rate cuts are likely, or expresses strong concerns about the economy, this would likely amplify the downward pressure on the AUD, leading to a greater increase in EUR/AUD.
Hawkish Tone: If the RBA attempts to temper expectations of further easing, or emphasizes its commitment to controlling inflation, this could provide some support to the AUD and limit the upside for EUR/AUD.
Data Dependency: The RBA has emphasized that it will continue to rely on data and the evolving assessment of risks. Any surprises in upcoming Australian economic data could shift expectations and impact the currency pair
In summary: The anticipated RBA rate cut is likely to put downward pressure on the AUD, which would cause EUR/AUD to increase. The magnitude of the move will depend on the RBA's accompanying statements and any surprises in upcoming economic data.
do you think they will go hawkish or dovish????
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.