The Reserve Bank of Australia will be handing down their interest rate decision today.
It is widely expected that the interest rate will stay the same at 3.0%, where it has been since December. The rate has dropped 1.75% since October 2011.
Chief economist of HSBC Bank of Australia, Paul Bloxham states “Low interest rates are supporting the economy, including improvements in consumer sentiment and the housing market,”. Many believe interest rates will not be raised any time soon by the RBA (Reserve Bank of Australia).
Economists and investors will not only watch closely to see if there is a rate change, they will listen closely to the words of RBA Governor Glenn Stevens, to see if he makes any monetary projections for the Australian economy.
What this means for my Forex Trading
Since February, the AUD has gained against the USD a little over 200 pips. Last week closed significantly bearish for the AUD. Depending on this week’s AUD news, the technical bearish signal could be confirmed to see the AUD heading to the 1.03 area. Below is a picture of the AUD/USD weekly chart.
This week’s AUD news:
Monday: RBA Rate Statement and Cash Rate
Tuesday: Trade Balance
Wednesday: Building Approvals and Retail Sales
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