Date: Tuesday 2nd July 2019
The RBA announce their interest rate decision during the Asian session. 18 out of 26 analysts surveyed by Bloomberg expect the RBA to cute rates by 25bps to 1%, while the other eight analysts expect the RBA to remain on hold at 1.25%.
The markets have priced around a 70% probability of a rate cut and therefore we expect the this to be a volatile event.
Last month the markets had fully priced a rate cut, and AUD rallied on the release (though it was short lived).
We see a cut to 1.00% as high risk, and therefore will only be trading this event if the RBA remain on hold.
What happened last time?
One minute spike: 18 pips
Setting up procedure
Our market of choice: AUD/USD
AUD RBA Interest Rate Decision
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