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SpanishAussie Trades Flat Ahead of RBA’s Cash Rate Decision, 30+ PIP Volatility Likely in AUD parity; April 05, 2022
Australia Cash Rate Decision
Today RBA has scheduled to release Key Cash Rate Decision at 0430 GMT/1000 IST. 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. 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.
Today traders expect the cash rate will remain unchanged at 0.10 pct. The RBA hasn’t raised cash rates since November 2010. Traders anticipate changes in cash rate in May only. Australia’s bonds have tumbled 5.9% this year, extending declines in recent weeks. On the other scenario, investors expect at least one hike by June to take it to 0.25% — followed by six-straight increases in the second half to raise the benchmark to 1.75% by year-end. Markets keep an eye on updated GDP, CPI and employment change forecasts too for the upcoming years.
Let’s see how AUD has reacted during the previous data release:
March 01:
Feb 01:
Technical View:
AUD/USD:
- The Aussie trades in narrow range ahead of RBA’s Cash Rate Decision and hovers around $0.7540 mark.
- Today pair made intraday high at $0.7548 and low at $0.7435 mark.
- A day chart and H1 chart with triple EMA suggest bullish trend for the time being.
- A sustained close above $0.7550 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $0.7502 will check further supports.
| Support | Resistance |
| $0.7502 | $0.7550 |
| $0.7480 | $0.7578 |
| $0.7461 | $0.7599 |
| $0.7437 | $0.7622 |
| $0.7412 | $0.7654 |
Take a look and do trade wisely!
Good Luck
