When is the RBA Meeting Minutes release, and how could it affect the AUD/USD?
|RBA Meeting Minutes overview
The Reserve Bank of Australia (RBA) is due to drop the latest release of their Meeting Minutes, a close-up look at the central bank's internal discussions heading into the most recent rate call that saw the RBA remain on hold on interest rates, as markets are widely expecting. The Aussie economy is far off of growth figures that would allow the central bank to begin lifting rates, and it is unlikely that the Meeting Minutes will show much deviation over the previous reading.
How could it affect the AUD/USD?
The RBA has been steady on rates for a while now, and it looks like the central bank is going to remain flat for the foreseeable future, with market analysts giving it even odds that the next move on interest rates may actually be a rate cut instead of a hike.
Following headlines that the US is looking to actively ramp-up into a trade war with China, markets are rushing into safe havens, and the broader market direction could easily sweep the RBA's release off the table altogether.
As FXStreet Chief Analyst Valeria Bednarik noted on the AUD/USD technical stance, "The pair is markedly bearish, down for a third consecutive day and further retreating from a major Fibonacci resistance. In the 4 hours chart, the 20 SMA heads south almost vertically well above the current level and moving away from the larger ones. Technical indicators in the mentioned chart remain at oversold levels, with the RSI resuming its decline, currently at 23, signaling a bearish breakout ahead."
Support levels: 0.7410 0.7370 0.7335
Resistance levels: 0.7480 0.7515 0.7565
Key notes
AUDUSD Aiming for 0.7400/0.7370 Area
AUD/USD analysis: testing 2018 lows, poised to break lower
About the RBA Meeting Minutes
The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the AUD.
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