AUD/USD is turning a little slow as the countdown to the Reserve Bank of Australia’s interest rate decision takes the spotlight. The following illustrates the market structure from both a longer-term and shorter-term outlook into the meeting.
The Aussie pair peaked at 0.755, a mew 2022 high and matching October 2021 monthly top. The pair outpaced its major counterparts against the dollar, as most major pairs held within familiar levels, but AUD/USD added roughly 80 pips daily.
Australia published March TD Securities Inflation, which rose 4% YoY from 3.5% in the previous month. The country will publish the March AIG Services PMI and the S&P Services PMI for the same month. Additionally, the Reserve Bank of Australia will announce its decision on monetary policy.
The central bank is widely expected to maintain the cash rate on hold at 0.1%. Overall, market players are expecting policymakers to maintain their cautious stance amid the Eastern Europe crisis and the upcoming Federal election in the country. Most analysts expect the central bank to start normalizing the monetary policy by August, although keeping in mind that the RBA will probably move slowly.
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