On Tuesday, a press conference of the Reserve Bank of Australia will take place. At 07:30 (GMT+3:00) the regulator will announce the decision on the interest rate. Participants in financial markets expect that the Central Bank will leave the key interest rate at the previous level of 1.50%.
Since the last meeting of the Central Bank, a number of ambiguous economic reports from Australia has been published. In the fourth quarter, the country's GDP growth slowed from 0.7% to 0.4% (q/q). The market expectations were at 0.5%. In February, 17,500 new jobs were created in comparison with the forecasted value of 19800. The unemployment rate increased by 0.1% to 5.6%.
According to the latest minutes of the RBA meeting, the regulator is concerned about the level of inflation and the growth of wages in the country. The Central Bank said that maintaining the current monetary policy would contribute to sustained economic growth and the target inflation rate achievement.
We believe that the Reserve Bank of Australia will maintain a neutral position and keep interest rates unchanged. We recommend you to pay attention to the comments of the Central Bank representatives.
- Support levels: 0.76750, 0.76450, 0.76000
- Resistance levels: 0.77100, 0.77750, 0.78300
The AUD/USD currency pair has been in a sideways trend for quite some time. The technical pattern is ambiguous. In the past two weeks, strong demand and supply zones have been formed: 0.76450-0.76750 and 0.77450-0.77750, respectively. The signals of the indicators vary:
- The price has fixed below 50 MA and 200 MA;
- The MACD histogram has begun to rise and has fixed above the signal line.
We recommend opening positions from the key levels.
If the price fixes below the 0.76750 mark, you need to look for entry points to the market to open short positions. The movement is tending to the round level of 0.76000.
Alternative option. If the price fixes above the 0.77100 mark, the AUD/USD currency pair growth is expected. The closest target of fixing profit is the offer zone of 0.77450-0.77750.
When following the positions, we recommend using a trailing stop.