Australia RBA Interest Rate Decision
The key event for the day will be Australia’s Interest Rate Decision scheduled 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.
At its previous meeting in August, the RBA held on to its plans to scale back weekly bond purchases from September to A$4 billion ($3 billion) from A$5 billion. In addition, RBA also said in minutes of its August meeting that it was prepared to respond if further bad health news led to a “significant setback” for the recovery. The question is whether the latest developments meet that condition. Important to note here that Australia’s economy has weakened severe from current lockdowns too. Just wait for the RBA Governor’s decision.
Let’s how AUD has reacted during the previous data release:
- The Aussie remains slightly volatile in early Asia after flat AIG Services Index data and hovers around $0.7450 mark.
- Markets eye RBA Interest Rate Decision for the further directions.
- It made intraday high at $0.7456 and low at $0.7433 mark.
- A day chart is down while H1 chart with triple EMA suggests up trend for the time being.
- A sustained close above $0.7455 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $0.7421 will check further supports.
Take a look and do trade wisely!