RBA Rate Statement overview
The Reserve Bank of Australia (RBA) is set to make their latest Rate Statement at 04:30 GMT for Tuesday, and while the RBA is seen remaining stagnant on interest rates until sometime in the latter half of 2019, traders will be keeping a close eye on the central bank's statements to sniff out an idea of how the RBA is leaning in terms of hawkish or bearish interpretations of current Australian economic data, which continues to disappoint with sluggish growth and a lop-sided economy. Forward guidance is an alien word to the RBA, and traders will be looking to see if central bankers for Australia are expecting a positive or negative turn for the Aussie economy.
How could it affect the AUD/USD?
With the Aussie stalled out on higher timeframes and broader markets remaining subdued as US-China trade tensions remain at peak levels, the AUD/USD is at the wrong end of a very steep hill, and as FXStreet's own Valeria Bednarik noted, the Aussie's technical indicators are not helping as they middle around their naught-lines: "ahead of the event, the pair offers a neutral stance in its 4 hours chart, as it remained capped by converging 100 and 200 SMA, both running parallel at around 0.7400 and barely above a bearish 20 SMA, while technical indicators head modestly lower around their midlines. The pair remains within familiar levels, and it will take some follow-through either above 0.7445, or below 0.7330 to see a directional continuation afterward."
Support levels: 0.7370 0.7330 0.7300
Resistance levels: 0.7400 0.7445 0.7485
Key notes
Will RBA Buckle Under Yuan Weakness?
RBA to keep rates on hold today - Barclays
RBA: Glass half full approach is not credible - TDS
About the RBA Rate Statement
Decisions regarding this interest rate are made by the Reserve Bank Board, and are explained in a media release which announces the decision at 2.30 pm after each Board meeting.
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