RBA Rate Statement overview
Early Tuesday at 03:30 GMT sees another go-around for the Reserve Bank of Australia (RBA) on interest rates and an updated rate statement, though movement on the policy front is far from expected by broader markets as the Aussie central bank continues to keep itself dug in at a firm rate of 1.5%, but today traders will be keeping a close eye on the RBA's dialogue, with extra focus on the central bank's inflation and growth expectations looking forward, as well as forecasts for the Aussie job market. Lending and credit conditions are also high up the list for central bank watchers, with an increasing number of policymakers showing concern about tightening lending requirements.
How could it affect the AUD/USD?
The AUD/USD has already been teasing into a bullish stance recently, helped along by sporadic Greenback-selling, and as noted by FXStreet's own Omkar Godbole, the Aussie sees growing potential for a bullish extension as long as the RBA doesn't deliver any nasty surprises: "the AUD found acceptance above the long-term falling trendline and the key 50-day EMA hurdle last week, validating the bullish divergence of the RSI and stochastic. Notably, the bullish breakout is backed by positive developments on the indicators. For instance, the RSI is printing bullish above 50.00 and the 5-day and 10-day EMAs are trending north in favor of the bulls. The rising MACD is indicating more gains could be in the offing. For AUD/USD, the path of least resistance is on the higher side. The immediate resistance of 0.7266 (100-day EMA) could be put to test in the short-term. A break higher would expose the next resistance lined up at 0.7318 (July 20 low). A break below the ascending 10-day EMA would neutralize the immediate bullish outlook.
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.
About the RBA 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.
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