This Tuesday, May 4, the Reserve Bank of Australia (RBA) will publish its decision on interest rates.
The schedule will be at 1:00 p.m. local time in Australia, (00:30 AM Eastern time GMT -3 Arg.)
The decision is made based on the economic activity and inflationary levels of the country.
Considering that since the last publication in April, the Consumer Price Index (CPI) increased from 0.9% to 1.1%, there could be some hint about future changes in the subsequent statements that will be made.
In 2020, with the arrival of the pandemic and the economic measures they had to take, they opted to boost public spending to alleviate the effects of the crisis. In this sense and since then, they lowered interest rates to 0.10% and implemented the purchase of bonds. These measures have had an effect on job recovery, sustained consumer spending, and rising house prices.
One of the programs on employment was the JobsKeeper, which expired last March. A new measure that they will implement in the short term is a subsidy for childcare. The objective, according to statements, is to incorporate hours of female work into the labor market. This expense will be incorporated into the budget to be announced on May 11.
In this sense, the Reserve Bank will continue with the stimulus policy to achieve the desired levels of employment and inflation.
AUDUSD closed buy. The preference is buy.
Scenario of possible buys only above highs, the suggestion is 0.7765 at TP 0.7775 TP: 2 0.7780.