12:30am (NY Time) AU RBA Rate Decision Forecast 3.00% Previous 3.00%
ACTION: AUD/USD N/A
Reserve Bank of Australia will release its interest rate decision today. Almost 100% of analysts surveyed by bloomberg agree that RBA will keep this rate decision at unchanged verdict, as there are no expectations of further rate cuts at this current moment.
RBA governor will also release a statement along with the rate decision, and the market may react with heavy volatility if his statement is biased toward recovery or prolonged recession. Prior to the rate decision market has been trading AUD/USD to as high as 0.8460 area, the top of the range of AUD/USD’s 320+ pips of bullish run during the last 4 calendar days.
One interesting observation is that there are rumors circulating a possibility of RBA talking down on the AUD due to the current overvaluation level. If this were to take place, we could see some heavy retracement of AUD/USD pair back down to the 0.8250 area.
UPDATE: Market did the classic “Buy Rumor and Sell Fact” reaction and sold off immediately after the release. As RBA governor Stevens made his statement with the rate decision, market moved down and I hitched for a ride. Got 20 pips from this trade, not a bad day for about one hour of real trading time.
Related posts:
- Trade Plan For RBA Interest Rate Decision 09/07/10
- RBA Interest Rate Decision 09/01/09
- RBA Cash Rate Decision 11/30/09 (Interest Rate Decision)
- Forex News Trading Australia RBA Interest Rate Decision 12/06/10
- Forex Trading Strategy on RBA Interest Rate Decision 10/04/10
- Forex Strategy For AU RBA Interest Rate Decision 08/01/11
- Forex News Trading AU RBA Interest Rate 05/03/11
- Forex News Trading AU RBA Interest Rate Decision 01/31/11
- Forex news trading for AU RBA Interest Rate 02/28/11
- Forex News Trading AU RBA Interest Rate 04/05/11
{ 3 comments… read them below or add one }
Alright, sent one more time
Henry,
Just wondering…where do you see .8560 as the high over the last 4 calendar days? What I see is it hasn’t been at that level since last summer.
Oops! It is a typo, I meant 0.8460… Sorry made the correction already.