Forex Trading: AUD/USD Ahead Of RBA Rate Decision

With a lot of speculation and varying opinions about the pending rate decision today (Tuesday) (expected at 5:30 Metatrader Time), we have seen some expectations at a 50 basis point rate cut and some economist suggesting a halt in the easing. The data has been encouraging, we have seen some recent inflationary numbers out of Australia based on a devalued currency and rising import prices, there have been some positive numbers on the housing market (New Home Sales +8.3% in January) and a better than expected Retail Sales figure today all pointing to the fact that the 400 basis points of recent easing has begun to benefit the market.

Based on this, we will watch the RBA decision closely, as well as the short-term hourly retracement analysis below. The chart show the 21 hour moving average providing some resistance over the last few sessions and break could lead us to the 38.2% level and the converging moving averages after that.  The lows at 62.85 should provide some short-term support, with the 62.45 level providing further support if necessary.

Subscribe by RSS Subscribe by Email