AUD/USD Could Rise Up to 1.0% If RBA Keeps Rates On Hold
AUD/USD could rise up to 1.0% if the RBA leaves rates unchanged, CBA’s Kristina Clifton said in a research report. “A Bloomberg analysis of past decisions suggests AUD/USD could rise up to 1.0% 30 minutes after the decision if the RBA keeps the cash rate at 4.35%,” the senior economist and currency strategist said.
How much higher AUD/USD will rise will depend on the RBA’s post-meeting statement and press conference, Clifton said. If the statement suggests a rate cut is imminent, AUD/USD’s gains could be smaller. However, if the statement is non-committal about a rate cut, AUD/USD could rise more than 1%, Clifton added. AUD/USD was down 0.1% at 0.6351.
Source: Bloomberg