When is the RBA Monetary Policy Statement, and how could it affect the AUD/USD?

RBA Monetary Policy Statement Overview

The Reserve Bank of Australia (RBA) is due to drop their latest Statement of Monetary Policy (SoMP) early Friday at 01:30 GMT; the RBA has been stuck in a rut, recently seeing the second anniversary of no policy adjustments from the Australian central bank, and Friday's policy statement is unlikely to deliver anything new for traders to dwell on, with the RBA's current policy path well-priced into the Aussie as it stands. Growth continues to struggle to hit the central bank's targets, and the Australian economic recovery continues to remain lopsided, keeping the RBA likely to remain stoic on action well into 2019.

How could it affect the AUD/USD?

The Aussie remains firmly entrenched in consolidation, and with much of the RBA's outlook already priced into the AUD/USD pairing, market reaction to the SoMP is likely to remain limited, especially with the technicals keeping the AUD trapped within major swing points, and according to FXStreet's Chief Analyst Valeria Bednarik: "the pair turned bearish in the short term, now trading below all of its moving averages in the 4 hours chart, and with technical indicators heading south within negative territory. Nevertheless, the pair remains mid-way within its last two-month range, with chances of testing the bottom in the 0.7300 region on a break below 0.7370."

Support levels: 0.7370 0.7330 0.7300

Resistance levels: 0.7400 0.7445 0.7485

Key notes

AUD/USD analysis: gains trimmed, more range ahead

About the RBA Monetary Policy Statement

The RBA Monetary Policy Statement released by the Reserve bank of Australia reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. It is considered as a clear guide to the future RBA interest rate policy. Any changes in this report affect the AUD volatility. If the RBA statement shows a hawkish outlook, that is seen as positive (or bullish) for the AUD, while a dovish outlook is seen as negatvie (or bearish).