The Reserve Bank of Australia (RBA) left interest rates unchanged at 1.5%, what most economists had expected. But what impact would 6 February RBA rate decision have on the AUDUSD pair? Find out here.
6 February, GKFX – While all had expected the RBA to stay on hold at 1.5% for a 17th consecutive meeting, due at 03:30GMT, the wording in the statement will be analyzed for any shifts in the outlook for policy and the domestic/global economy and specifically with regards to the strength of the Aussie.
Analysts at Westpac explained that a neutral outlook seems likely, with inflation lower than ideal but the global growth outlook encouraging.” The language around AUD is worth noting. In its December statement, the RBA toned down its concern over AUD strength, noting merely that the Aussie “remains within the range that it has been in over the past two years.” This language could be strengthened.”
AUD/USD weak near 0.7900 on risk aversion, ahead of RBA
6 February RBA Rate Decision AUDUSD Impact Analysis
Technicals lean bearish below 0.8000. The price is now below the 200-month SMA located around the midpoint of the 0.80 handle and pressure is building below there bringing in the January 9 and10 lows at 0.7809 into sight ahead of the 200 D SMA at 0.7739. However, monthly RSI remains with a bullish bias although the price is unable to find traction towards 0.81 handle.
About the RBA interest rate decision
The 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 raises 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.
This article 6 February RBA Rate Decision AUDUSD Impact Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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