Trading the News: Reserve Bank of Australia (RBA) Interest Rate Decision
The Reserve Bank of Australia (RBA) meeting may do little to alter the near-term outlook for AUD/USD[1] as the central bank is widely expected to keep the official cash rate (OCR) at the record-low of 1.50%.
The RBA may merely attempt to buy more time as ‘inflation is low and is likely to remain so for some time,’ and Governor Philip Lowe & Co. may stick to the current script as ‘household income has been growing slowly and debt levels are high.’
With that said, the fresh rhetoric coming out of the RBA may continue to tame expectations for a 2018 rate-hike, with the Australian dollar[2] at risk of facing additional headwinds over the remainder of the year as the central bank remains in no rush to implement higher borrowing-costs.
However, an unexpected shift in forward guidance for monetary policy may spark a rebound in AUD/USD, with a batch of hawkish comments raising the risk for a rebound in the Australia dollar especially if the central bank starts to show a greater willingness to normalize monetary policy. Sign up and join DailyFX Junior Currency Analyst Daniel Dubrovsky LIVE[3] to cover the RBA meeting.
Impact that the RBA rate decision had on AUD/USD during the previous meeting
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Period |
Data Released |
Estimate |
Actual |
Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
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JUN |
