AUD OUTLOOK: Monetary statements and policy will be the key point for this week.

The Central Bank statements start today in Australia at 1.30pm AEST; as the Reserve Bank of Australia will be announcing their interest rate decision for October. Currently the market is not expecting any movement on the interest rate; officially there is a 93% chance that the RBA will hold rates at 2%.

The proceeding announcement from the head of the RBA Glenn Stevens will allow analyst to receive insight into the RBA’s thoughts on monetary policy in Australia. The expectation is that there will be some sort of Interest Rate cut late this year, however; nothing is set in stone – therefore we should receive plenty of volatility during the event.

We are also expecting Australia’s Trade Balance figure to be release at 10.30am AEST. The expected result for the release is for the figure to be slightly worse than the previous figure, at -2.48B. This should assist the AUD as the figure has recently settled around much higher (negative) levels, at -3.89B.

Tuesday night will be a busy night for the both the EURO and US session’s; as more Central bank members will be speaking. First at 3am AEST Wednesday morning will are expecting Mario Draghi head of the European Central Bank to make an announcement in Frankfurt; this will also give more insight to the current QE Levels and Interest rate levels in the Euro zone. The EURO zones has been performing much better lately – however current EUR levels are unsustainable for the weakened economy- so I am sure that will come up in the announcement.

Secondly, Fed Member John Williams will be speaking in San Francisco. As rate hikes are a hot topic in the US; we can expect further rate speculation from this member.

Lastly, we have the Head of the Bank of England, Mark Carney to have his monthly announcement about current Monetary Policy in the UK. Analysts are not expecting any interest rate movements that night. However; Interest rate hikes are expected over the next 6 months – so this may lead to BoE rate speculation. The GBP has been heading south more recently so this may cause the additional decline if the Interest Rates are pushed back any further.