RBA (Reserve Bank of Australia) is expected to hold borrowing costs steady for the second consecutive month in July, as a overwhelming 22 analysts unanimously agree as surveyed by Bloomberg… Here’s forecast:
12:30am (NY Time) AU RBA Cash Rate Decision Forecast 4.5% Previous 4.5%
ACTION: AUD/USD BUY 4.75%
The immediate future policy for RBA may be that of a “wait and see” as most analysts are expecting RBA to also hold rates unchanged during the next few RBA meeting. This will undoubtedly add selling pressure to the AUD, or perhaps keep AUD in a very tight trading range as the market wait for RBA to make the next move. As a matter of fact, Credit Suisse overnight swap index is pricing RBA to hike about 22 basis points in the next 12 months… therefore we are likely to get no surprise today.
But just in case RBA decides to surprise the market, and they have done that before, the plan for this rate decision becomes simple: If RBA hikes rates or hint about hiking rates during the next meeting, we’ll buy AUD. If everything comes as expected, we’ll stay out of the market.
Related posts:
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- Forex News Trading Australia RBA Interest Rate Decision 12/06/10
- Forex Trading Strategy on RBA Interest Rate Decision 10/04/10
- Forex News Trading AU RBA Interest Rate Decision 01/31/11
- RBA Cash Rate Decision 02/01/10
- Forex News Trading For RBA Interest Rate Decision – 11/01/10
{ 2 comments… read them below or add one }
Hi Henry
Please let me know if you have a live trading room soon also!
Jonty: Not at the present moment, but I am working on something next week. Thanks,