|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?
|AUD RBA Interest Rate Decision – 19-06-04|
|One minute spike||18 pips|
Setting up procedure
|Main Event||AUD RBA Interest Rate Decision|