The RBA is meeting and will announce their latest rate decision today, the 19 th of March. The Central Bank is expected to leave rates unchanged, but remain vigilant on the inflation front. If the Bank retains their ‘hawkish’ stance on monetary policy, the AUD is likely to remain fairly stable, but any signs of uncertainty would spell disaster. The Fed meeting this week, is likely to bring real directional certainty. A bearish Fed will support the AUD, but any further confirmation of resurgent inflation in the US, will spark the ‘higher for longer’ narrative from the Fed. This could accelerate the rebounding reserve and magnify recent weaknesses in the commodity currency.
Current Level: 0.6525
Support: 0.6450
Resistance: 0.6800
Last week’s range: 0.6557- 0.6617