The latest rate update is due from the RBA at 2.30pm Sydney time today and Aussie dollar traders will be primed for something to shake the currency out of its recent doldrums. The Aussie has been trading in a relatively tight range for the last few weeks and traders are looking for something from the central bank to increase volatility. The stronger greenback and a struggling Chinese economy have kept the Aussie under pressure and more poor data from China has seen the Aussie drop in this morning’s session, but action, or more likely comments from the RBA could see further moves in the market.
An overwhelming 97% of polled economists expect the Reserve Bank to keep rates on hold today for the third straight month as they continue to digest data and even though numbers are starting to fall, inflation is still somewhat off the target rate and this could add a hawkish tone to their accompanying statement. The Aussie traded down to multi-year lows in mid-August and support now sits around those levels, a break lower could open the way to test the 2022 low at 0.6150, however a more hawkish outlook could see the pair rally back to challenge short term resistance around the 65 cent level.
Resistance 2: 0.6520
Resistance 1: 0.6500
Support 1: 0.6363
Support 2: 0.6150
