Technical Bias: Neutral
- AUDUSD steadies after 2% drop since Thursday.
- RBA expected to cut interest rate to new record low of 2% at 4:30 GMT.
The AUDUSD was little changed on Tuesday morning, consolidating in the mid-0.7800 region ahead of a potentially landmark Reserve Bank of Australia rate announcement.
The AUDUSD, having declined 2 percent since Thursday, was trading at 0.7840 in Tuesday’s Sydney session. The pair has had very little price action in the early part of the week as the markets brace for an expected interest rate reduction by the RBA.
The RBA is expected to cut its benchmark interest rate to 2 percent from 2.25 percent, marking a new record low. The RBA unexpectedly cut interest rates to 2.25 percent from 2.5 percent in February, joining a dozen global central banks in easing monetary policy.
The RBA will issue its official policy statement at 4:30 GMT, setting the stage for a potentially volatile day of trade for the AUDUSD.
New York Session
The Institute for Supply Management will release US non-manufacturing PMI at 14:00 GMT. The non-manufacturing PMI is forecast to hold at 56.5 in April.