The AUD has seen a very tight range last week, across the board. Tomorrow we will get the RBA's decision and that will likely be the catalyst for a pickup in volatility.
We believe the odds are for a dovish hold...which might disappoint the markets.
Last week RBA Governor Lowe noted the difficult external environment, but he also repeated three times that the Australian
economy was at a "gentle turning point", suggesting he was not going to rush into further easing after the June and July rate cuts.
So despite some worse employment figures,
it seems like a cut is by no means a done deal.
Look to buy AUDUSD on a disappointment of the market's rate cut expectations.
We believe the odds are for a dovish hold...which might disappoint the markets.
Last week RBA Governor Lowe noted the difficult external environment, but he also repeated three times that the Australian
economy was at a "gentle turning point", suggesting he was not going to rush into further easing after the June and July rate cuts.
So despite some worse employment figures,
it seems like a cut is by no means a done deal.
Look to buy AUDUSD on a disappointment of the market's rate cut expectations.
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Join over 42,000 traders and get the Forex Course for Smart Traders - 17 in-depth lessons - always 100% free at MarketMates.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.