AUD interest statement

I thought that I would have found a thread talking about what is going to happen in less that 1hr with reguards to the AUD interest statement.Well i didnt see any, so i am starting one.

It looks as if the AUD will not raise interest rates and therefore we should see a decline on the AUDUSD graph. This will also help to propel the AUDJPY down a lilttle bit as we see that this pair seems to like trading at highs. I dont really have much to say about this, but i am just curious on other feedback with there stance on trading this AUD interest rate decision.

i could be wrong but this will most likely be a boring release. the RBA doesnt release a statement unless they change rates, and everyone is in agreement that rates will remain the same. so really there is no news expected. however, once in a while an RBA official will make some comments after the decision comes through.

The big action for AUD/USD will come on Friday with the RBA's Monetary Policy Statement and the US NFP both hitting the wires 11 hours apart.

There market has factored nearly zero and the bond market has priced out any chance of an interest rate rise after last weeks PPI and CPI data. It will be interesting to see if it breaks strong support level at 8230 or if we have to wait for positive nofarm payrolls on Friday to do this.

I think most of the move will come after Friday US data release on NonFarm. If positive for US I think the AUS will drop back to 80000.

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Source - Trading Room

Mr Pontikis said the Australian dollar would likely consolidate today, provided the Reserve Bank of Australia (RBA) keeps with market expectations and leaves interest rates at 6.25 per cent.

The bank held its monthly board meeting yesterday and will announce its interest rate decisions at 0930 AEST today.

The bond market has completely priced out the chance of an interest rate rise today.

"If that 0930 event comes and goes without a rate rise, which I suspect will be the case, it (the Australian dollar) will drift off to the $US0.8250-60 mark," Mr Pontikis said.

He said that while the RBA's monetary policy statement on Friday will be important for the currency, Tuesday's Federal budget will have the biggest impact in determining the Australian dollar's direction.