AUD/USD Holds Around 0.8930 Awaiting RBA Rate Decision

The focus now is on the Reserve Bank of Australia (RBA) which is widely expected to cut its cash rate by 25 basis points to a record low 2.5 percent. The decision is due at 0430 GMT.

“We may see a sharper selloff in the AUD/USD should the RBA keep the door open to further rate cuts in the coming months,” said David Song, currency analyst at DailyFX.

“The central bank may retain a dovish tone for monetary policy throughout 2013 as China – Australia’s largest trading partner – faces a more pronounced slowdown and continues to face a risk for a hard landing.”


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