When are the RBA minutes and how might they affect AUD/USD?

The Reserve Bank of Australia (RBA) is up for releasing a minute statement of its April 02 monetary policy meeting at 11:30 am Syd/9:30 am Sing/HK and 01:30 GMT on Tuesday. The central-bank met market expectations of holding the monetary policy intact during the meet but the additional line about monitoring developments in the rate statement and recent comments from the policymakers are something that makes today’s event more important than earlier.

Ahead of the release, analysts at TD Securities said,

RBA Minutes for the April Board meeting will be closely scrutinized for any clarification around the addition of a line at the end of the policy statement. The addition of “The Board will continue to monitor developments and set monetary policy to support sustainable growth in the economy and achieve the inflation target over time.” was widely interpreted as the RBA sending an easing signal at the May Board meeting. With an election and fiscal boost around the corner we see a May cut as highly unlikely.

How could the minutes affect AUD/USD?

In light of recent dovish signals from the Australian central bank and the headline policymakers, traders will search for clues to confirm a future rate-cut in order to drag the Aussie downwards. Should the minute statement provide any hints conveying a downside risk to the economy, the recently added statement to monitor developments could signal a rate-cut is coming from the RBA in near-future, which in-turn can drag the AUD/USD back to 100-day simple moving average (SMA) level of 0.7140 and then to 50-day SMA level of 0.7105.

Meanwhile, lesser emphasis on the activity weakness and recent change in the policy statement, coupled with more light on employment details and likely benefits from the US-China trade talks might propel the Aussie pair to challenge medium-term trend-line, at 0.7185, followed by 0.7195/0.7200 area comprising 200-day SMA. With this, the AUD/USD pair can well aim for 0.7235/40 resistance region.

Key Notes

AUD/USD struggles near 0.7170 ahead of RBA minutes

AUD/USD Technical Analysis: Aussie parked below 0.7200 key resistance

About the RBA 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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD extends falls after US retail sales beat expectations

EUR/USD extends its falls after US retail sales beat expectations with 1.6% and despite downward revisions. It trades in the low 1.1200s. Earlier, Germany's Manufacturing PMI dropped sent it lower.

EUR/USD News

GBP/USD struggles around 1.3000 after US retail sales

GBP/USD trades around 1.3000 after US retail sales beat expectations with significant rises. It dipped below the line earlier. UK retail sales also exceeded early projections, but the damp market mood kept it pressured. 

GBP/USD News

USD/JPY keeps the red below 112.00 mark, despite goodish USD uptick/stable equities

The USD/JPY pair trimmed a part of its early slide and recovered around 20-pips from weekly lows, albeit struggled to make its way back above the 112.00 round figure mark.

USD/JPY News

XRP make a move and puts the market in take-off mode

The market is a few cents away from going into full bullish mode. The bullish process follows the expected pattern, first XRP, then ETH. BTC must accept the team player role and back up the market.

Read more

Gold: Bounce from YTD lows/50% Fibo. support might turn out to be short-lived

The precious metal stalled its recent decline and managed to stage a modest recovery from support marked by 50% Fibo. level of the $1196.40-$1346.85 strong up-move.

Gold News

Majors

Cryptocurrencies

Signatures