RBA Preview: AUD/USD to break above 0.74 on a positive statement

FXStreet Team FXStreet

The Reserve Bank of Australia (RBA) is having a monetary policy this Tuesday. It seems that the central bank will offer a dovish statement, which will have a limited surprise factor. Meanwhile, the aussie is bullish and poised to break above 0.7400, FXStreet’s Chief Analyst Valeria Bednarik reports.

More – RBA Preview: Five major banks expectations

Key quotes

“The RBA is expected to leave the monetary policy unchanged, keeping the cash rate at a record low of 0.25%. Policymakers are expected to keep conducting market operations to provide liquidity to the banking system.”

“The Australian economy was baring pretty well with the pandemic, until a second wave hit the country, leading to a lockdown in Victoria’s region. On average, the area represents 23% of the total GDP, which means that this latest lockdown will likely imply a steeper setback in growth in Q3.”

“The AUD/USD pair trades firmly above the 0.7300 level, not far from the year high at 0.7380 reached at the beginning of the week. The advance was mostly backed by the broad dollar’s weakness, which persists. In this scenario, a mildly dovish RBA may result in a temporal setback in AUD/USD. However, bulls may take their chances at lower levels, once the dust settles.”

“The AUD/USD pair may turn bearish on a break below the 0.7300 level, but the RBA needs to be a dovish shock for that to happen. The central bank is not expected to be optimistic, but in the case the statement is perceived as positive, there’s room for an advance towards the 0.7400 level and beyond.”

Author

FXStreet Team

FXStreet

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.