A model new month means we get to see main central banks updating their financial insurance policies!

The Reserve Financial institution of Australia (RBA) will get the ball rolling on Tuesday at 4:30 am GMT.

Will the choice assist prolong AUD/USD’s uptrend this week?

AUD/USD 15-min Foreign exchange Chart by TV

In case you missed it, AUD/USD has been making greater highs and better lows since Thursday when the pair discovered help from the .6600 psychological space.

AUD/USD is now buying and selling nearer to the .6640 space, which traces up with at the moment’s Pivot Level line.

Extra importantly, its present ranges are additionally near the development line and 100 SMA help on the 15-minute time-frame.

Can AUD/USD prolong its short-term uptrend?

It can doubtless depend upon the RBA’s resolution.

Markets see the central financial institution conserving its charges regular at 4.10% after shocking markets with 25 basis-point price hikes in Might AND in June.

BUT.

Some merchants consider that Governor Lowe and his staff and his gang might elevate their rates of interest by one other 25bps to 4.35%.

For one factor, June’s assertion mentioned that “additional tightening of financial coverage could also be required,” one thing that was additionally within the Might assertion earlier than RBA stunned us with a June price hike.

Main indicators, such because the S&P manufacturing PMI, MI inflation expectations, and the unemployment price trace that the financial system may take at the very least one other price hike.

If RBA surprises us with one other 25bps hike, then AUD/USD might soar from its development line help ranges.

AUD/USD might rise to its .6670 earlier highs and even try for the R1 (.6680) earlier than the sellers step in.

If you happen to aren’t certain about shopping for AUD/USD, then you can too watch for the precise occasion and commerce the precise launch.

If the RBA decides to maintain its charges at 4.10% as a substitute, then you should utilize the damaged development line help for a break-and-retest state of affairs earlier than focusing on earlier lows like S1 (.6620) or .6600.

Whichever bias you find yourself buying and selling, bear in mind to take income throughout the Asian or London session buying and selling to ensure you don’t get stopped out by different market catalysts!

This content material is strictly for informational functions solely and doesn’t represent as funding recommendation. Buying and selling any monetary market entails danger. Please learn our Threat Disclosure to ensure you perceive the dangers concerned.