Aussie Waits on RBA
The Aussie dollar waits on RBA decisions. Rate holds or changes drive volatility. Traders watch closely for clues on monetary policy. This often sets the tone for AUD pairs.
Some really nice two way price action on the Aussie complex which started overnight on the release of Chinese data, namely GDP, the Industrial Production and the Fixed Asset Investment numbers. The hourly chart for the complex clearly shows volatility candles being triggered across the board (as denoted by the purple arrows), with the Aussie rising sharply before moving back inside the spread of the volatility candle. This momentum was also signaled on the currency strength indicator before the currency moved into a consolidation phase in the transition to the European and London sessions.
Further Gains
There were further gains for the Aussie in the morning session, until bullish momemtum drained away which resulted in some great trades to the short side. These were particularly evident in the AUD/USD, GBP/AUD and AUD/NZD.
The Aussie now faces another important item of fundamental news, specifically the RBA Monetary Policy Meeting Minutes which may give traders some indication of whether the central bank is likely to cut interest rates again in November. Opinion appears to be divided on this issue, and this uncertainty is reflected in the current sideways consolidation for the AUD/USD on the daily chart. The failure of the AUD/USD to take out the 0.7381 resistance line last week has seen the pair fall to a low of 0.7198 before managing to settle at support in the 0.7230 region. Any break through here could then see a move back down to support at 0.7198 where the 100 ma also await.
Volume Price Analysis Insights
Volume price analysis (VPA) reveals true reaction. Pre-announcement consolidation shows caution. Post-news volume spikes confirm direction. Quantum currency strength indicator highlights AUD extremes during waits.
Trading Takeaways
Focus on AUD/USD or AUD/JPY around RBA events. Look for volume confirmation on breakouts. Anna Coulling’s approach uses Quantum tools to navigate policy-driven moves confidently.
Stay patient—Aussie waits on RBA can lead to strong trends. Quantum indicators make spotting them easier.
How RBA Decisions Impact the Aussie Dollar
The Reserve Bank of Australia (RBA) sets monetary policy for Australia. Its decisions on interest rates drive the Aussie dollar (AUD). Traders watch closely. Rate changes influence capital flows. This affects AUD strength or weakness.
Rate Hike Impact
RBA rate hikes make AUD attractive. Higher yields draw foreign investment. Capital inflows boost demand. AUD/USD or AUD/JPY rally. Volume price analysis (VPA) confirms—high volume on up moves shows conviction. Quantum currency strength indicator ranks AUD high.
Rate Cut Impact
Rate cuts weaken AUD. Lower yields reduce appeal. Investors seek better returns elsewhere. Outflows pressure AUD lower. VPA spots distribution—high volume down candles validate selling.
Rate Hold and Statement Tone
A hold keeps rates steady. But the statement matters. Hawkish tone (future hikes possible) supports AUD. Dovish (cuts likely) pressures it. Markets react to forward guidance. VPA reveals true response—volume on post-announcement moves confirms sentiment.
Why AUD Is Sensitive to RBA
AUD is commodity-linked. RBA policy amplifies this. Strong economy (hikes) boosts commodity demand. Weak growth (cuts) hurts it. Quantum matrix shows relational flows—AUD vs USD or JPY.
Trading RBA Decisions with VPA
Prepare with the economic calendar. Wait for release reaction. Use VPA—high volume validates direction. Low volume spikes warn of traps. Quantum tools on MT5 or NinjaTrader spot AUD extremes fast. Currency strength ranks post-news.
RBA decisions move AUD reliably. VPA with Quantum indicators turns policy events into disciplined trades. Stay patient—volume reveals conviction.
By Anna Coulling
Creator of Volume Price Analysis