Today, the Reserve Bank of Australia (RBA) is expected to cut interest rates by 0.25%. However, the market has already expected this, so the focus is on the official statement.
If the statement removes the words about controlling inflation as the top priority, people may expect more rate cuts in the future, leading to more selling of the Australian dollar.
On the other hand, if the statement still shows concern about inflation, the rate cut may be seen as temporary, and the Australian dollar could rise again.
Still, the overall trend is a shift away from tight monetary policy. Since people expect the Bank of Japan to raise rates, the Australian dollar may have difficulty rising against the yen.
Expected AUD/JPY Range: 96.80 – 95.50
Note: This information does not guarantee profit. Make your own decisions when trading.