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Central Bank Meetings and Commodity Prices in Focus for Traders This Week

2 weeks ago

Traders are bracing themselves for a series of central bank meetings scheduled for the upcoming week, with particular attention on the Reserve Bank of Australia’s meeting on Tuesday. Anticipation is high for a potentially hawkish tone from the RBA following stronger-than-expected inflation data last month. Additionally, market participants are awaiting Chinese activity data and inflation readings from key emerging markets.

While the likelihood of another rate hike by the RBA remains slim, the possibility of rate cuts in 2024 has diminished. It is widely expected that the RBA will maintain its benchmark interest rate at 4.35% and retain a neutral stance, with language similar to that used in the previous board meeting.

In the commodities market, oil prices saw an uptick following Israel’s closure of the Kerem Shalom humanitarian crossing into Gaza on Sunday, prompted by a rocket barrage from Hamas. This incident has raised concerns about the potential disruption of delicate hostage and cease-fire negotiations. Additionally, Saudi Arabia’s decision to increase the price of crude oil sold to Asia reflects efforts to tighten the oil market.

Traders will closely monitor these developments throughout the week for their potential impact on financial markets and trading strategies.

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