Wait-and-See Reserve Bank of Australia (RBA) to Sap AUD/USD Rebound

Trading the News: Reserve Bank of Australia (RBA) Interest Rate Decision

The Reserve Bank of Australia (RBA) interest rate decision may do little to alter the near-term outlook for AUD/USD as the central bank is widely expected to keep the official cash rate (OCR) at the record-low of 1.50% in October.

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It seems as though the RBA will retain the record-low rate throughout 2018 as ‘once-off declines in some administered prices in the September quarter are expected to result in headline inflation in 2018 being a little lower, at 1¾ per cent,’ and the central bank may merely attempt to buy more time even as Australian households and businesses face rising mortgage costs.

As a result, more of the same from Governor Philip Lowe Co. may sap the appeal of the Australian dollar, but a material shift in the forward-guidance for monetary policy may spark a bullish reaction in AUD/USD if the RBA shows a greater willingness to move away from its accommodative stance. Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups!

Impact that the RBA

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/trading_news_reports/2018/10/01/Wait-and-See-Reserve-Bank-of-Australia-RBA-to-Sap-AUDUSD-Rebound.html