Tonight there could be major movement for the Australian Dollar with the long awaited interest rate decision in the US coupled with Unemployment Data for Australia. The Australian economy of late has been a little subdued with several weak data releases over the last few weeks. Through the night there will be a Reserve Bank Bulletin which will give an insight into the economy but could also provide and insight into the RBA’s future thoughts.
The most anticipated decision in years
Janet Yellen will reveal the Federal Open Market Committee’s decision tonight as to whether they’re going to increase interest rates. There has been a huge amount of anticipation surrounding the decision as it’s been over a year since the Federal Reserve proposed there would be 4 more hikes in 2016. Evidently none of these hikes have taken place yet, however in a few hours this is expected to change.
The only decision that’s left to be made is whether the rate hike will be 0.25% or 0.5%. The markets are expecting there to be a 0.25% so if there is something more than that then there could be major rate movements.
US Data tomorrow
Tomorrow afternoon there will also be inflation data for the US which is expected to show improvements on previous readings. The main reason for the long wait for a hike has been due to the FED wanting to see economic growth and it looks like there may have now been enough. However if there was to be a hold on the rate hike and the data was not as good as expected then this would prove their hesitations correct.