Chart of the day - EURAUD (04.09.2023)

10:38 AM 4 September 2023

The Reserve Bank of Australia is scheduled to announce its next monetary policy decision tomorrow at 5:30 pm BST. Market expects that RBA will keep rates unchanged for the third consecutive meeting, with the main rate staying unchanged at 4.10%. RBA has hinted earlier, just as many other central banks did, that it will take a 'wait-and-see' approach and the general feeling is that it will stick to it this month. Why? Simply because there was not any data released since the latest meeting in August that would warrant a return to rate hikes.

While the latest CPI report for July showed price growth slowing down from 5.4 to 4.9% YoY, it is still significantly above target range. Moreover, deceleration is not spotted in services inflation and prices in this category are expected to grow further in the coming months. Another factor that is likely to discourage RBA members from making a move at this meeting is an ongoing deterioration in the outlook for the Chinese economy. While Chinese authorities have launched a number of measures aimed at kickstarting the economy recently, it will take time for them to take effect. Last but not least, this will be the final RBA meeting under Phil Lowe as RBA Governor before he gets replaced by current Deputy Governor Michelle Bullock later this month. Having said that, Lowe may prefer to wait for the new leadership to make the next move. Nevertheless, this does not mean that RBA has given up entirely on rate hikes - a mention of a data-dependent approach is likely to be retained in the statement.

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

Taking a look at EURAUD chart at D1 interval, we can see that the pair has been pulling back recently. Sellers pushed the pair down to the 1.6700 support zone, where the bearish momentum eased. Pair is currently trying to bounce off this zone, marked with previous price reactions as well as the 50-session moving average (green line). Long, lower wick of today's daily candlestick suggests that there is a strong bull camp in the area. However, whether this rebound runs or dies will likely depend on the message sent by RBA tomorrow.

Source: xStation5

Xtb logo

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence