RBA expected to cut rates in June, where to sell.
With recent employment data having been poor out of Australia, and inflation still staying low, it was no surprise that the RBA is moving more explicitly to a rate cut. Governor Lowe stated that the board would be considering a rate cut in June.
After the RBA's minutes and Governor Philip Lowe's speec yesterday h the Overnight Indexed Swap rate increased the odds of an RBA rate cut for June to 70%. The investment bank Westpac had forecast two rate cuts this year and they see that first cut in June. So, with the next RBA meeting on June 4, expect the AUD to remain pressured ahead of that date as expectations are that the RBA will cut interest rates then.
Later on today we have the FOMC meeting minutes and I expect Powell will maintain a neutral tone. So, with this scenario the AUD/USD pair is likely to remain pressured. Here are some possible technical entry points below:
Daily chart AUDUSD
Hourly Chart AUDUSD
