AUD: Big day on the data front highlighted by RBA decision

AUD/USD is still stuck in a sideways range trade between 1.0350 and 1.0550 (technicals updated in members) but we should be guaranteed some volatility today either from AUD/JPY flows or from economic data releases.

The RBA rate decision at 03:30 GMT is the main event, although few in the market are expecting any fireworks. Last I saw, the market was pricing in around a 20% chance of a rate cut and most of the interest today will revolve around the wording in the statement.

HSBC China services PMI is at 01:45 GMT and that might also cause some volatility if its markedly different from last time’s reading of 51.7. Prior to that at 00:30 GMT we have Australian trade data and the house price index. All told, should be a busy day.

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