AUD/USD Inches Higher Before RBA Rate Decision, Key Data

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On Monday, the Australian dollar (AUD) edged higher against the US dollar (USD), pushing the price of the AUD/USD pair further than 0.7300 ahead of positive Australian statistics.

The Reserve Bank of Australia will announce its interest rate decision on August 3, 2021. The interest rate might remain unchanged from the previous month’s, according to the RBA report.

The RBA interest rates reflect the overall economic condition of the country. If the bank adopts a hawkish attitude towards quantitative easing and rises the interest rates, it is positive for the Australian economy. However, a dovish view following a consistent interest rate or a cut in it might not be favorable for the country’s economic health. Generally speaking, increasing numbers suggest a bullish market for the AUD/USD currency pair ahead and vice versa. 

The Australian Bureau of Statistics (ABS) will then disclose building [ermit data in June, which economists believe will boost the number from -7.1 percent to 4.5 percent from the prior month’s reading.

It refers to the flow of business capital (the Australian economic development). The AUD is prone to some volatility as a result of this. The more permits issued, the more favorable (or bullish) the AUD becomes.

As of this writing, the AUD/USD currency pair consolidates around 0.7373. On the downside, the price of the pair might find some support near the listed price level.

AUDUSD

Conclusion

Considering the macro-economic outlook of the pair, buying it around current levels might be a good trading move in the short to medium term.

 

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