When is the RBA rate decision, and how could it affect the AUD/USD?

RBA rate statement overview

Tuesday will be delivering another chance for the Reserve Bank of Australia (RBA) to rest on its laurels and keep the Aussie interest rate locked at 1.5%. After recently 'celebrating' over two straight years of inactivity for the RBA, lopsided economic growth and a stubborn housing market coupled with shaky wage growth sees the RBA unlikely to budge from its perch any time soon, and the Australian central bank is broadly expected to remain in their deep wait-and-see rut for some time to come. As noted by analysts at ANZ regarding the RBA's upcoming rate statement, "On the RBA, no change in policy is expected at the Board Meeting on Tuesday- market pricing has the chance of a hike at 0.0% - with only 1 basis point priced in by the end of 2018. Nevertheless, RBA watchers will dissect the post-meeting Media Release and Governor Lowe's remarks on Wednesday night for any clues for the policy outlook.”

How could it affect the AUD/USD?

With the RBA firmly planted on interest rates, Aussie markets will be giving the rate call (and guaranteed lack of movement) little to no heed as traders look to grab any nuances in the central bank's associated rate statement. Any rhetoric adjustments pertaining to dovish or hawkish swings in sentiment from the central bank board members will have an exacerbated effect on the immediate action for the AUD following release, but long-term momentum for the AUD/USD is likely to remain firmly bearish. 

The new trading week saw an attempted bullish recovery from lows at 0.7165 fizzle out quickly, marking in a swing high at 0.7225, and with little reason for bulls to pull up their bootstraps the pair can expect to continue drifting further away from last week's high at 0.7360, and a sustained drop into fresh 30-month lows at the 0.7100 major technical barrier can't be ruled out.

Key notes

AUD/USD analysis: bearish ahead of RBA monetary policy meeting

A busy day ahead for Aussie traders, here is what's in store - TDS

Aussie works its way ahead of RBA announcement

About the RBA rate statement 

Decisions regarding this interest rate are made by the Reserve Bank Board, and are explained in a media release which announces the decision at 2.30 pm after each Board meeting.

About the RBA rate decision

RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.