At 7:30 am during the Asian session, we expect RBA's decision on Australia's main interest rate, where investors expect the central bank to make no changes. The bank will keep interest rates at a record low of 1.50%, mainly due to worries about the US-China trade war.
In its report, after the decision on the basic interest rate, the bank will most likely confirm its cautious position. Earlier today, Donald Trump said the US and China are far from a trade agreement despite what they have achieved with Canada.
D. Trump: "Too early for negotiations with China"
Australia, as a China-dependent economy, will continue to occupy a conservative monetary policy until the US and China have come up with a decision on trade practices.
Dovish moods among RBA members will continue to negatively impact AUD, and in the long run the trend will remain downward.
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