The Australian Dollar is heading downwards. Overview for 04.05.2021

After a couple of trading sessions of stable growth, AUDUSD is falling on Tuesday morning. 

The Aussie is falling against the USD on Tuesday. The current quote for the instrument is 0.7731.

The Reserve Bank of Australia had another meeting this morning and kept all parameters of its monetary policy intact. The benchmark rate remained at 0.10% and wasn’t expected to be revised. 

The low interest rate and continuation of the strategy to support the labor market along with inflation is of paramount importance. The RBA is not a fan of making any unexpected moves and announcements, it always informs financial markets about changes in its monetary policy parameters in advance. Now, it’s clearly not the time to revise the policy because the labor sector hasn’t reached stability the way it should. 

This week, Australia will be quite active in the economic calendar. On Wednesday, it is going to report on the Retail Sales in April, which is expected to be positive. 

Moreover, there will be a report on the Building Approvals in March which may add 2.9 m/m after skyrocketing by 21.6% m/m in February.

On Friday, the RBA is scheduled to publish its Monetary Policy Statement where investors can find hints at the continuation of the regulator’s current monetary policy for the mid-term. One should pay attention to the RBA’s estimations of the labor market and the CPI – these two parameters are currently the most important for the regulator when assessing the macroeconomic situation in the country.