Australia Cash Rate Decision
Reserve Bank of Australia has scheduled to release key interest rate decision along with policy statement at 0330 GMT/0900 IST. 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. Since March 2020, RBA has kept key cash rate steady at 0.25 pct. This time also market has predicted stable cash rate but focus turns on the tone of the policy statement. Will it be hawkish or dovish? On the basis of the future expectations, Aussie will react quickly against major peers.
Let’s take a look how AUD has reacted during the previous data release:
Note: Important to note here that as Cash Rate Decision is High Impact Data but market didn’t give high volatility during that particular event period. According to the tone of the statement, AUD has provided hardly 20 – 25 PIP against major peers.
AUD/USD: The Aussie trades marginally higher in early Asia ahead of RBA’s Cash Rate Decision. The pair made intraday high at $0.7194 and low at $0.7168 marks. On the top side key resistances are seen at $0.7222, $0.7290, $0.7340, $0.7370, $0.7422, $0.7462 and $0.7502 mark respectively. On the other hand, a consistent close below $0.7160 will take the parity down towards key supports around $0.7126, $0.7090, $0.7068, $0.7002, $0.6969, $0.6922, $0.6861, $0.6833 and $0.6799 mark respectively.
Take a look and do trade wisely!