When is the RBA's Rate Statement, and how could it affect the AUD/USD?

Joshua Gibson FXStreet

RBA Rate Statement overview

The Reserve Bank of Australia (RBA) drops their latest interest rate decision at 03:30 GMT, alongside the central bank's Rate Statement, which will be the focus of traders' attention for the release with the RBA well-entrenched with interest rates at 1.5% for over two years, and with the RBA broadly expected to remain on hold well into 2019, investors will be keeping an eye out for any subtle changes to the RBA's rhetoric when it drops with the interest rate decision.

How could it affect the AUD/USD?

The Aussie-Dollar pairing remains constrained at near-term lows despite a quick bullish push at the week's open, and as noted by FXStreet's own Valeria Bednarik: "from a technical point of view, the weekly opening gap remains unfilled but with the pair now at daily lows, it seems likely it could do so before resuming its advance. Friday's close at 0.7313 is, therefore, the immediate support, and as long as the level holds, the downside will look limited. In the 4 hours chart, the 20 SMA keeps advancing above the larger ones, while technical indicators eased alongside the price, maintaining their downward slopes within positive ground. The pair could fall through the mentioned support on a dovish RBA but will need to extend its decline below 0.7250, a strong static mid-term support, to lose the positive tone."

Support levels: 0.7315 0.7280 0.7250

Resistance levels: 0.7385 0.7420 0.7455

Key notes

AUD/USD analysis: filling the gap ahead of RBA

About the RBA Rate Statement

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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