Trading volatility: AUD around RBA rate decision
The OECD recently said that Australia should hold rates higher for longer. This has manifest itself in a stronger Australian dollar. IGTV’s Jeremy Naylor looks at an area where trading volatility may spike around AUD/NZD.
With the recent bullish trend there are some technical areas to watch with further gains the potential outcome from this impending rate meeting on Tuesday.
(AI Video Summary)
Potential volatility around the AUD/NZD pair
The focus of this video revolves around the anticipation of trading volatility related to the Reserve Bank of Australia's (RBA) next moves, as the OECD advises keeping interest rates high to control inflation. Despite expectations of interest rates maintaining at 4.35%, the OECD hints at potential rate cuts or increases depending on inflation trends through to 2025. The Australian dollar strength against the New Zealand dollar (AUD/NZD) is highlighted, nearing a resistance line of 110.53, with speculation that any signal from the RBA regarding rate hikes could further boost the Aussie dollar's value. Jeremy Naylor advocates a bullish position on the Australian dollar, with a specific trading strategy in place.
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