AUD/USD in the spotlight as RBA forecast to cut interest rates tomorrow

At approximately 3.30am GMT tomorrow, the Reserve Bank of Australia (RBA) is widely expected to lower its OCR (Official Cash Rate), by 0.25% from the current 4.35% level, to 4.10%. There has not been much coverage of the AUD/USD here lately, but we are going to delve into that a bit more now. The AUD/USD hit a low on February 3, at 0.6088 and that low came as the wider dollar hit its best levels for more than 2 years. The EUR/USD traded to 1.0141 and the dollar index (USDX) rose above 110. Well, since then the dollar has weakened and that has allowed the AUD/USD to rebound from that low and head towards its first major longer-term corrective level, at 0.6414 (38.2% of 0.6942-0.6088), but it has not got there yet. The high since that low was set earlier today, when it reached 0.6374. The AUD/USD closed on Friday at 0.6352. Understandably, if the RBA fail to move tomorrow, the AUD/USD could reach and perhaps surpass that technical level, at 0.6414. As to whether the impact of an interest rate reduction will halt the current rebound is clearly on the table too.The AUD/USD is right now at 0.6371