U.S. balance of payments (Balance of paymens (Current account)) and the interest rate in Australia (Cashe rate)

Balance of paymens (Current account) - Macroeconomic Indicators balance of payments, providing high impact on financial markets. Published by the U.S. Federal Reserve each quarter in the middle of the month of publication. The index reflects the ratio between payments received from abroad, and payments sent abroad.

U.S. balance of payments consists of two main sections - the trade balance and the balance of the capital. In situations where the flow of funds from abroad exceeds the outgoing amounts, to form a positive balance, which contributes to the strengthening of the dollar. Strengthening of the national currency can not only contribute to a positive balance, and reducing its negative value.

Cashe rate or the interest rate on overnight published by the Reserve Bank of Australia in the first of each month except January and has a high impact on the financial markets.

The value of this indicator is defined as the ratio of supply and demand in the market. Reserve Bank of Australia not only determines the optimal level of rates, but also to actively support it through special market operations. Cashe rate plays a key role in Australia as a key interest rate for overnight at the relationship between financial intermediaries.

Growth rates leads to a reduction in consumer loans and, consequently, to the growth of savings of individuals. In this situation, it is natural to a slowdown in economic growth. Parallel increased rates attract more capital to the country, which is the cause of strengthening the national currency in the medium term. However, if the background of all of these processes are not observed real growth rate of the economy situation can turn stagnation and other negative consequences in the long term.

Repo rate - the interest rate on repo transactions such as the Bank of England is published monthly 4.10 number, usually on Thursday and has a high impact on the financial markets. The value of this index is the basic interest rate in the UK.

The term «repo» means a special agreement under which the seller gives the obligation to buy back the securities at their buyer at a fixed price on a specified date. Bank of England set the upper limit of inflation 2%, when consumer prices will rise faster than the level of the base interest rate may be revised. Mechanism of the effect on the financial markets is the same as the previous indicator.