RBA on the Agenda for the AUD/USD
Rowan Crosby • 1 min read
The AUD/USD has managed to recover a little bit after yesterday’s spike lower to the downside. A weak retail sales figure saw price spike through the 0.7200 level, before some buying came in the save the day.
Later today, we have the next installment of the RBA’s interest rate decision. The overall consensus is that absolutely nothing is going to change here.
Many are even suggesting the statement is going to be simply a ‘cut and paste’. There was plenty of guidance given out by the RBA last month and nothing has really changed. There might be a small chance of a slightly dovish tone.
That might even be amplified by the fact that banks have been raising rate out-of-cycle. That means there is likely pressure on the RBA to some extent.
The AUD/USD is now around major support at 0.7200. Yesterday’s bounce saved us a little bit as I was worried we were headed right into 0.7100.
While that is still my downside target for the time being, it might not come as fast as anticipated. Yesterday’s buying was a little bit unexpected in my opinion.
At the moment, the AUD/USD is down on the day and we are having another go at holding below this support level.