Interest rate decision had been affecting the market movement.
The next RBA interest rate decision will the on TUE 04/07/2009 0430GMT.
Over the pass few week the AUD/USD had be railing up pushing it back to 0.7153.
The AUD/USD could continue its rise if the central bank decided that the interest rate have reach its bottom. Currently the interest rate is at its 45-year low of 3.25%.
In long term expectation, AUD/USD clearly is on a bullish outlook. But if RBA would hold its rate and decided that it reaches its bottom, AUD/USD would break its support line of 0.7272 and continue its rally upwards.
On the other hand, if the economic outlook does look promising, and the trade condition is deteriorating, RBA would cut its interest rate to boost lending rate. High possible of a 25bp or more interest cut.
AUD/USD average pip movement is less then 200pips per day.
I dont expect big movement like 100pips when the news is release. Try to set a profit of around 50pips and 25pips trailing stop. If movement before the news is release is more then 30 pips i advise to not trade this event.
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