RBA Preview: The downside risk for AUD is a dial-down of the hawkish rhetoric – OCBC

The Reserve Bank of Australia (RBA) will announce its policy decisions on Tuesday. Economists at OCBC Bank explain how the central bank could impact the AUD.

RBA in focus

“We opine that an absence of a dial-down in hawkish rhetoric, accompanied with a 25 bps hike to 3.6% could lend strength to AUD. The downside risk for AUD is a dial-down of the hawkish rhetoric. 

“Resistance at 0.6790/ 0.68 (38.2% fibo, 200 DMA), 0.6860/70 (21 DMA, 38.2% fibo) and 0.6930 (50% fibo retracement of Feb high to Mar low).”

“Support at 0.6720, 0.6680/90 levels.”