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AUD/USD sets negative weekly close ahead of RBA policy decision tomorrow

Very early tomorrow morning, at 3.30am GMT, the Reserve Bank of Australia will be the first major Central Bank to kick off the week with its latest monetary policy decision. The markets are not expecting any change from the RBA tomorrow. They are expected to keep the current OCR (Official Cash Rate) on hold at 4.35%. That was made pretty obvious from the rhetoric that accompanied their previous decision last month. On Friday the push higher in US yields helped to send the AUD/USD lower. On March 8 the AUD/USD had peaked at 0.6668. It had closed last Thursday at 0.6581. It could not get back above the 0.66 handle on Friday either and later dropped back to a low at 0.6552. It later closed out the week at 0.6560.That close was in fact, just one single pip below its 200 day moving average (at 0.6561) and was also below its 100 day (0.6586) and 50 day (0.6569) moving averages too. The RBA could turn this around with a hawkish bias tomorrow, even if they remain on hold. Conversely, they could more likely dent it further, if they fail to deliver threats of more rate increases to come. Overnight the AUD/USD has traded a tight range covered by 0.6554 to 0.6569. It is currently trading at 0.6563

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