Aussie Appreciates Slightly Ahead of RBA’s Cash Rate Decision Due Tomorrow, 40+ PIP Volatility Likely in AUD Parity; Dec 06, 2021
Australia’s Cash Rate Decision
Tomorrow Australia will release Cash Rate Decision and Australia’s Monetary Policy Statement at 0330 GMT/0900 IST. Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future. The rate decision is usually priced into the market, so it tends to be overshadowed by the RBA Rate Statement, which is focused on the future. Monetary Policy Statement is among the primary tools the RBA Reserve Bank Board uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions.
Let’s see how AUD has reacted during the previous data release:
- The Aussie appreciates on Monday ahead of Australia’s Cash Rate Decision due tomorrow.
- Today pair made intraday high at $0.7040 and low at $0.6996 mark.
- A day chart and H1 chart with triple EMA suggest bearish trend for the time being.
- A sustained close above $0.7040 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $0.6994 will check further supports.
Take a look and do trade wisely!