Aussie Interest Rate is Just Around the Corner

The RBA has shocked investors over the last couple of months as the bank has changed its status regarding its rate decisions. During the midst of the recent rally, only a couple of months after the global economy began showing signs of a slight recovery, the RBA shocked the markets by increasing their central rate.

Although market pricing is split down the middle on whether the Reserve Bank of Australia will increase its rate this time round, most economists expect the bank to do so – a move which could boost the Australian Dollar back to higher ground.

One must note that unlike other central banks that are still dealing with their struggling economy, GDP and inflation numbers from Australia are showing that the Australian economy is healing at a much faster rate. Recent GDP showed a steady 0.6% figure, while inflation is slowly climbing higher. The recent figure came out at 1.3%, within the r the Central Bank’s comfort zone.

With commodity prices on the rise and economic data showing a better situation, it now seems pretty clear that the RBA wants a higher rate, especially dues to the economy’s outlook

Technical Analysis – A Possible Trade Opportunity

Last week the AUD/USD broke its eight month trend line and headed into a 50 pip range. To date investors are waiting for the upcoming news, as a higher rate of 3.75% could help to provide relative strength to the Australian Dollar. In any case, a disappointing figure could lead to a break below support which will lead this pair to lower levels.

AUD/USD- Daily Chart

Analysts Expectations for Tuesday November 1^st at 3:30am GMT

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The eToro Team

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