Aussie Weakens Sharply Ahead of RBA’s Policy Rate Decision; Feb 01, 2021

Australia’s Interest Rate Decision

Australia will release Key Policy Rate tomorrow at 0330 GMT/0900 IST. It’s among the primary tools the RBA uses to communicate with investors about monetary policy. Most probably RBA will keep interest rate unchanged at 0.10 pct. Markets focus on the RBA’s QE program. RBA is currently having AUD100bn QE program which expires at the end of April. Will RBA extends it or simply let it end?

Along with this, two other key events are scheduled to release. The RBA Governor Lowe speaks on the “Year Ahead” on Feb 03 and thereafter, Lowe will testify before the House of Representatives Standing Committee on Economics due on Feb 05.

After the successful completion of key events, one can decide future direction of the AUD parity.

Let’s see how AUD has reacted during the previous data release:

Dec 01:

Nov 03:

Technical View:

AUD/USD: Aussie falls noticeably ahead of RBA’s Interest Rate Decision. The pair made intraday high at $0.7662 and low at $0.7605 mark. A sustained close above $0.7650 requires for the upside rally. Alternatively, current downside movement will check key supports too.

Key Resistances: $0.7650, $0.7676, $0.7712, $0.7776

Key Supports: $0.7602, $0.7590, $0.7520, $0.7500

Take a look and do trade wisely!
Good Luck