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SpanishAussie Depreciates Ahead of RBA’s Cash Rate Decision, 50+ PIP Volatility Likely in AUD Parity; June 07, 2022
Reserve Bank of Australia’s Cash Rate Decision
Today Australia will come up with the Policy Rate Decision at 0430 GMT/1000 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.
During RBA’s previous meet, RBA raised Interest rate for the first time since Nov 2020 to 0.35 pct vs 0.10 previous release. In today’s meet, markets expect 40 Basis Point rise to 0.75 pct vs 0.35 pct previous release. Now the big question is, does RBA raise Interest rate on slower pace or faster as expected by the other economists? From the political news of the Australia, Prime Minister Anthony Albanese’s Labor party won a May 21 national election, bringing to an end nine years of center-right Liberal-National government. Let’s see how new government take steps to bring down the inflation and imply appropriate Monetary Policy.
Have a look on how AUD has reacted during the previous data release:
May 03:
April 05:
Technical View:
AUD/USD:
- The Aussie weakens on Tuesday ahead of RBA’s Cash Rate Decision and stabilizes below $0.7200 mark.
- Today pair made intraday high at $0.7194 and low at $0.7163 mark.
- A day chart and H1 chart with triple EMA suggest down trend for the time being.
- A sustained close above $0.7202 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $0.7150 will check further supports.
|
Support
|
Resistance
|
|
$0.7150
|
$0.7202
|
|
$0.7120
|
$0.7222
|
|
$0.7100
|
$0.7250
|
|
$0.7078
|
$0.7272
|
|
$0.7040
|
$0.7299
|
Take a look and do trade wisely!
Good Luck
