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RBA Interest Rate Decision overview

early Tuesday at 04:30 GMT sees another round of the Reserve Bank of Australia’s (RBA) Interest Rate Decision and ensuing Rate Statement. Little to no change is expected from the RBA for the remainder of this year and most of next as well, but traders will still be keeping an eye on the central bank’s statement, looking for hints of any changes to the central bank’s leanings against a backdrop of Aussie economic data over the past month, though with the Australian economy struggling to flash ‘all-good’ signs, the odds of seeing action in either direction from the RBA are on the low side.

How could it affect the AUD/USD?

The Aussie is especially vulnerable to downside shocks in broader markets, with trade tensions keeping both the RBA and AUD traders in general as investors fear a potential economic slowdown if negative knock-on effects from a slowing China should see exacerbated contraction at the hands of a steepening trade war with the US, and early Tuesday markets are no exception, according to FXStreet’s own Valeria Bednarik: “the pair heads into the key event with a neutral-to-bearish technical stance according to  readings in the 4 hours chart, as beyond the mentioned Fibonacci resistance, the pair was also unable to recover above a bearish 20 SMA, which extends its decline below the 200 SMA. Technical indicators in the mentioned chart hover around their midlines, with modest upward slopes that fell short from confirming an upward extension ahead.”

Support levels: 0.7190 0.7155  0.7120

Resistance levels: 0.7255 0.7300 0.7335

Key notes

AUD/USD analysis: cautious ahead of RBA monetary policy meeting

AUD fails to capitalise on improved market sentiment

AUD – Ready to Pop on RBA?

About the RBA Interest Rate Decision

RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.