{"id":77768,"date":"2026-02-03T12:41:36","date_gmt":"2026-02-03T01:41:36","guid":{"rendered":"https:\/\/www.icmarkets.com.au\/blog\/?p=77768"},"modified":"2026-02-03T12:41:37","modified_gmt":"2026-02-03T01:41:37","slug":"trade-audusd-on-the-rba-interest-rate-decision","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com.au\/blog\/trade-audusd-on-the-rba-interest-rate-decision\/","title":{"rendered":"Trade AUDUSD on the RBA Interest Rate Decision"},"content":{"rendered":"\n



While markets have been absorbed with geopolitical factors and huge moves in precious metals over the last few days, underlying fundamentals will come back to the fore, at least for a short while, for Aussie dollar traders on Tuesday when the Reserve Bank of Australia makes its latest interest rate decision. The market is strongly pricing in the change (70%) of a 25-basis point rate cut as recent data has pointed to a strong economy. Continued inflation pressure with annual CPI up at 3.8% and a strong labour market that saw 65,000 new jobs added in December and the Unemployment Rate drop to 4.1% has seen those rate hike expectations increase and the Aussie dollar gain ground against the dollar and on the crosses.<\/p>\n\n\n\n

These conditions should set up some interesting trading opportunities on the decision. It would be a surprise if they decided not to hike at this meeting but not a huge one, but it would certainly see some good Aussie selling but the more likely scenario is that we will see a hike and the moves will come on the back of forward guidance from the bank. A hawkish hike should see the Aussie rally strongly, while a neutral or dovish (much more unlikely) hike will probably see the currency retreat, the latter is now a possibility given recent market volatility, although in general most central banks will stick with the data.<\/p>\n\n\n\n

The Aussie had recent risen to levels not seen since early 2023 but has fallen back in the last few sessions on the back of a stronger US dollar and increased volatility in global markets in general. A hike combined with a more hawkish outlook should see the pair look to challenge those recent highs up near 71 cents, a more cautious hike could see it drop further into the range, whilst a hold should see a much more aggressive move south.<\/p>\n\n\n\n

Resistance 2: 0.7157 \u2013 2023 High<\/p>\n\n\n\n

Resistance 1: 0.7094 \u2013 2026 High and Trendline Resistance<\/p>\n\n\n\n

Support 1: 0.6807 \u2013 200-Day Moving Average<\/p>\n\n\n\n

Support 2: 0.6730 \u2013 Trendline Support<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"

While markets have been absorbed with geopolitical factors and huge moves […]<\/p>\n","protected":false},"author":8,"featured_media":77769,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[462,1],"tags":[],"class_list":["post-77768","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-news","category-uncategorized"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts\/77768","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/comments?post=77768"}],"version-history":[{"count":2,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts\/77768\/revisions"}],"predecessor-version":[{"id":77773,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts\/77768\/revisions\/77773"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/media\/77769"}],"wp:attachment":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/media?parent=77768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/categories?post=77768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/tags?post=77768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}