Trade the Aussie on the Reserve Bank of Australia’s Interest Rate Decision

Australian dollar traders are bracing for some volatility tomorrow as the Reserve Bank of Australia delivers its latest rate decision. The timing, as always, adds a little drama: the announcement lands just 30 minutes before the Melbourne Cup, with the press conference following shortly after, keeping market participants glued to screens while the rest of the country tunes in for the race.

The futures market is pricing in an 85% chance that the RBA will leave rates on hold at 3.60%, despite last week’s inflation data coming in hotter than expected. Attention will now turn to the forward guidance in both the statement and the press conference—any shift from previous indications, particularly in the context of the recent CPI print, could trigger meaningful moves in the Aussie.

Technically, the AUD has been range-bound between 0.6400 and 0.6600 in recent months and is trading near the midpoint of that band. With longer-term support and resistance levels tightening, traders are looking for a decisive break. The upside looks favoured if the RBA maintains a more hawkish tone into year-end and the start of next year.

Resistance 2: 0.6688 – September High
Resistance 1: 0.6663 – Trendline Resistance

Support 1: 0.6486 – Trendline Support
Support 2: 0.6438 – October Low

The post Trade the Aussie on the Reserve Bank of Australia’s Interest Rate Decision first appeared on IC Markets | Official Blog.