Impact 
Aussie Dollar Strengthens as RBA Keeps Rates on Hold
The Aussie dollar strengthens as RBA keeps rates on hold. This decision often boosts AUD sentiment. Steady policy signals economic stability. Traders see it as supportive for commodity currencies.
The main focus overnight was in Australia with the RBA deciding to hold the current cash rate at 2.25%, with no cut. This decision was against the backdrop of declining commodity prices and a slowdown in China with many expecting the rate to be cut to 2.00%. As a result the Aussie dollar strengthened on the news against many of the major currencies, with another nice move on the EUR/AUD on the 15 minute chart.
Quantum Indicators
The Quantum accumulation and distribution indicator initially defined the support and resistance region with the 1.4360 being the key level of support and a region that had been tested on several occasions prior to the news. The bearish sentiment was confirmed with the trend monitor to the bottom of the chart which continues to remain bearish in this timeframe with the move lower accompanied by high volume and confirming the short term bearish trend.
NinjaTrader Currency Strength Indicator
To the left of the chart and the Ninjatrader currency strength indicator, the euro (the yellow line) is continuing to move deeper towards the oversold region on the indicator, whilst the Aussie dollar (the blue line) is now approaching the overbought area in the 60 minute timeframe. The Quantum currency matrix is confirming the weakness of the EUR/AUD at the bottom of the currency ladder, and also reflecting the universal buying of the Aussie dollar in this timeframe in other currency pairs.
With the launch of the NinjaTrader forex brokerage, you can now combine the power of NinjaTrader with the Quantum Trading indicators, to provide the ultimate package to trade FX through one platform. You can find more details on the NinjaTrader brokerage account here, and in addition NinjaTrader offers a free forex demo account to get you started – just click the link here.
Volume Price Analysis Insights
Volume price analysis (VPA) confirms the strength. High volume on up candles shows buying conviction. Low volume earlier marked caution. Quantum currency strength indicator highlights AUD outperformance post-announcement.
Trading Implications
RBA hold favors long AUD positions. Watch AUD/USD or AUD/JPY for continuation. Pullbacks with volume support offer entries. Anna Coulling’s VPA approach with Quantum tools navigates policy-driven moves confidently.
Aussie strength after RBA hold creates opportunities. Quantum indicators make spotting and trading them reliable. Stay aligned with the momentum.
Understanding the Impact of RBA Rate Decisions
The Reserve Bank of Australia (RBA) sets the official cash rate, influencing borrowing costs, inflation, and economic growth. Naturally, rate decisions (hike, cut, or hold) have immediate and ripple effects on markets, especially the Australian dollar (AUD) and related assets. Clearly, traders watch these closely for volatility opportunities.
Rate Hike Impact
- AUD Strengthens: As a result, higher rates attract foreign investment seeking better yields. AUD/USD and AUD/JPY often rally.
- Inflation Control: This move aims to cool overheating economy, but can slow growth and hurt exports.
- Market Reaction: Risk-off sentiment if aggressive; equities/commodities may dip.
The Impact Of A Rate Cut
- AUD Weakens: Lower rates reduce yield appeal. As a result the AUD pairs fall, boosting exports but risking inflation.
- Economic Stimulus: Encourages borrowing/spending in slowdowns.
- Market Reaction: Risk-on boost for stocks/commodities; safe-havens like JPY weaken.
And How A Hold Impacts The Currency
- Stability Signal: Often neutral, but statement tone matters (hawkish = potential hikes, AUD support; dovish = cuts expected, AUD pressure).
- Market Reaction: Depends on expectations—if hold was priced in, limited move; surprise hold can spark volatility.
Broader Effects
- Commodities: AUD is commodity-linked (mining exports)—rate hikes support iron ore/gold prices indirectly.
- Related Pairs: AUD/NZD, EUR/AUD react to differentials.
- Global Ties: Influences NZD, CAD (similar economies).
Trading with Volume Price Analysis (VPA)
RBA decisions create volume spikes. VPA confirms reactions: high volume on post-announcement moves shows conviction. Quantum indicators (currency strength/matrix) on MT5/NinjaTrader highlight AUD extremes for entries. Anna Coulling’s approach uses VPA to avoid traps—wait for volume validation.
RBA decisions drive AUD volatility. Prepare with economic calendars and Quantum tools for clearer, confident trades.
By Anna Coulling