ForeXistenZ › Central banks › RBA
Reserve Bank of Australia (RBA)
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Sets rates for the Australian dollar, the market’s favourite gauge of risk appetite and China demand.
How the RBA moves the AUD
A central bank sets the interest rate on its currency. Traders compare that rate with the rates of other central banks; the wider the gap, the stronger the pull of money towards the higher-yielding currency. That is why the minutes before a RBA decision are among the most volatile of the month for the AUD. Book I and Book II of the ForeXistenZ trilogy show how to prepare for these days — and when to stay out.
Frequently asked
What does the Reserve Bank of Australia do?
Sets rates for the Australian dollar, the market’s favourite gauge of risk appetite and China demand.
Where is the Reserve Bank of Australia?
The Reserve Bank of Australia (RBA) is in Sydney, Australia.
Why do forex traders watch the RBA?
Interest rates are the price of a currency. When the RBA raises or cuts rates — or only hints at it — money moves into or out of the AUD, and AUD/USD reacts within seconds.
Where are the RBA’s decisions published?
Official decisions, statements and the meeting calendar are published on https://www.rba.gov.au.
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Other central banks
RBNZReserve Bank of New Zealand
Wellington, New Zealand — The first central bank in the world to adopt inflation targeting.
BIBank Indonesia
Jakarta, Indonesia — Guards the rupiah for South-East Asia’s largest economy.
MASMonetary Authority of Singapore
Singapore, Singapore — Steers policy through the exchange rate itself, not an interest rate — a rare model.
HKMAHong Kong Monetary Authority
Hong Kong, Hong Kong SAR — Defends the Hong Kong dollar’s peg to the US dollar.
BOJBank of Japan
Tokyo, Japan — For decades the anchor of near-zero rates — its every move shakes the yen carry trade.
BOKBank of Korea
Seoul, South Korea — Sets rates for the won, one of Asia’s most traded currencies.