Trading the News: Reserve Bank of Australia (RBA) Interest Rate Decision
The Reserve Bank of Australia (RBA) interest rate decision 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% in October.
It seems as though the RBA will retain the record-low rate throughout 2018 as ‘once-off declines in some administered prices in the September quarter are expected to result in headline inflation in 2018 being a little lower, at 1¾ per cent,’ and the central bank may merely attempt to buy more time even as Australian households and businesses face rising mortgage costs[2].
As a result, more of the same from Governor Philip Lowe & Co. may sap the appeal of the Australian dollar[3], but a material shift in the forward-guidance for monetary policy may spark a bullish reaction in AUD/USD if the RBA shows a greater willingness to move away from its accommodative stance. Sign up and join DailyFX Currency Analyst David Song LIVE[4] for an opportunity to discuss potential trade setups!
Impact that the RBA rate decision has had on AUD/USD during the previous meeting
|
Period |
Data Released |
Estimate |
Actual |
Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
|
SEP 2018 |
09/04/2018 04:30:00 GMT |
1.50% |
1.50% |
