AUD: ahead of the RBA meeting
Tomorrow is the meeting of the Reserve Bank of Australia (03:30 GMT). The RBA is expected to keep policy unchanged with the benchmark rate at a record low of 2.5%. According to Moody’s Analytics, the regulator won’t consider rate normalization until the labor market shows sustained improvement.
Australian employment data for Sep., due on Thursday, Sep. 9, will be closely watched after the economy added 121K jobs in Aug. – the largest increase since 1978. The unemployment rate is expected to edge up from 6.1% to 6.2%, while the number of jobs may fall by 30K.
The RBA is concerned with the housing price bubble, but it doesn’t plan to lift rates in order to curb the prices – this was keeping Aussie under pressure in the recent weeks. Traders will watch the meeting for efforts to talk Australian currency even lower.
AUD/USD recovered on Monday. Resistance is at $0.8665, $0.8830, $0.8870. Support is at $0.8660, $0.8640 and $0.8620.