While the AUD/USD will again be in focus today thanks to the RBA interest rate decision, most pundits expect little developments.

The reality is that the RBA will likely leave rates on hold at 1.5% but there may well be more to be said in its statement of monetary policy released on Friday.

The big factor at the moment is that the unemployment rate has fallen significantly. With the rate now pushing to 5%, that might mean the RBA potentially could upgrade their outlook and even mention what that might mean for rates going forward.

So while most of Australia won’t actually be watching the rate decision today, as it is the biggest horse race in the country – the Melbourne Cup. It might not matter as the AUD/USD might well get a boost on Friday.

Aussie Outlook

The AUD/USD is trading around the major level at 0.7200, slightly higher.

The USD was relatively flat and the other big issue we need to take note of is just how the USD will respond to the midterm elections.

Results will likely be out in the morning (Asian time), so that could well weigh on the market if the USD likes the result.