Aussie Trades Slightly Lower Ahead of RBA’s Cash Rate Decision, 30+ PIP Volatility Likely; May 04, 2021

Reserve Bank of Australia (RBA) Interest Rate Decision

The RBA has scheduled to release key Interest Rate Decision at 0430 GMT/1000 IST. The rate decision is usually priced into the market, so it tends to be overshadowed by the RBA Rate Statement, which is focused on the future. Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future. On the other side, RBA’s Rate Statement is among the primary tools the RBA Reserve Bank Board uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions.

Today RBA is more than likely to keep the cash rate, and other key policies, at a record low 0.1 per cent. RBA Governor Philip Lowe is expected to repeat that interest rates will not rise until inflation is back in the two to three per cent target band, an event it does not see happening until 2024. On the other side, Western Australia was under threat of a renewed lockdown. Hence possibilities are there that the RBA might continue with their dovish tone and weigh on the currency. Let’s see what Policy Statement brings for us and AUD too. Any changed in the growth forecast will provide further directions to the economy and currency too.

Let’s see how AUD has reacted during the previous data release:

April 06:

March 02:

Technical View:

AUD/USD: The Aussie trades marginally lower ahead of RBA’s cash rate decision and hovers around key support at $0.7740 mark. The pair made intraday high at $0.7763 and low at $0.7741 mark. A sustained close above $0.7770 on H1 requires for the upside rally. Alternatively, a consistent close below $0.7722 will check further supports.

Key Resistances: $0.7770, $0.7790, $0.7812, $0.7832, $0.7854

Key Supports: $0.7722, $0.7702, $0.7677, $0.7640, $0.7610

Take a look and do trade wisely!
Good Luck

Share on facebook
Share on linkedin
Share on twitter
Share on telegram
Share on whatsapp
Unleash Powerful Trading Conditions with TP Global.

Recent Posts



Suite 305, Griffith Corporate Centre, Beachmont, P.O. Box 1510, Kingstown, Saint Vincent and the Grenadines.

Mail us

Drop mail at:

Contact us

Call or Whatsapp
+44 7441 416320

Risk Warning: Forex and Contracts for Difference (CFDs) are leveraged products. Trading in these products is highly speculative and involves substantial risk. Please note that even knowledgeable and well-experienced investors can experience large potential losses because of trading in Forex and CFDs. Consequently, investors should be fully aware of all the risks involved when trading Forex and CFDs and accept all the negative consequences associated with such trading. Please always remember that trading in Forex and CFDs might not be suitable for all investors. It is desirable investors who would consider trading, to do so only with money that they can afford to lose. You are also recommended to seek independent financial advice if necessary. The content on this website does not constitute financial or investment advice. Any information herein is of a general nature and does not take into consideration your personal circumstances, investment experience or current financial situation. Apple, the Apple logo, iPod, iPad, iPod touch, and iTunes are trademarks of Apple Inc, registered in the US and other countries. iPhone is a trademark of Apple Inc. App Store is a service mark of Apple Inc.

TP Global FX Limited is registered and regulated by Vanuatu Finance Service Commission (VFSC) with a registration number 40409.

TP Global Limited is registered and regulated by FINANCIAL SERVICES COMMISSION (FSC) MAURITIUS with a registration number GB21026474

TP Global FX Limited is registered and regulated by Financial Services Commission, Mauritius with a registration number GB21026474

TP Global Fx Africa Limited is incorporated in Federal Republic of Nigeria under the Companies and Allied matters Act 1990 with registration number RC 1674202. The objects of the company are all subject matters not forbidden by Companies and Allied Matters Act 1990. To provide Electronic Platform through which clients can choose currencies, commodities, indexes, CFDs and other leveraged financial instruments to trade.

mappin at-sign phone close