RBA Minutes In Focus.
So today at exactly 1:30am Ghanaian time, the Reserve Bank of Australia released their Monetary Policy Meeting Minutes. Now to cut to the chase, the overall tone was very upbeat. Some of the upbeat information is as shown below:
- It was also noted that a reduction in risk aversion and/or an increase in the potential growth rate could see the neutral real interest rate rise again.
- Members noted that the strength of recent labour market data had removed some of the downside risk in the Bank’s forecast of wage growth.
Now if you have been in the forex market, you’d know that nothing moves currencies a lot than interest rates decisions or a hint of a cut or hike of interest rates by central banks. If you check the AUD/USD 15min chart you would recognize this has reflected on it because of this upbeat comments from the minutes that was released earlier today.
As of writing this text, price has shot up to the psychological level of 0.79000
and looks like it has lost momentum. This can signal a reversal of the current price action.
Trade Plan(AUD/USD): My trade plan looking at the 15min chart is to wait for price to retrace to the 38.2 Fibonacci zone which coincides with the resistance turned support of 0.78390 to enter a buy position from there with a stop loss just below where price was before the minutes was released (0.77760). Take profit of about 35 to 50 pips around the region of 0.78759 will be considered.