On Tuesday, 2 February at 05:30 (GMT+2), RBA will announce interest rate decision. It is unlikely that the interest rate, which is at the level of 2.0% since May, will be changed. However, the surprise from the Central bank is not excluded, as it has been done by the Bank of Japan last week. As we remember the Bank of Japan has introduced a negative interest rate on deposits.

Amid the decline in oil prices, which also caused the drop in the price of commodities, the pair AUD/USD failed to even partly regain the losses from the beginning of the year. The Australian dollar is traded successfully in cross-pairs with the major competitive currencies, such as Euro, Pound and NZD.

Today, the pair AUD/USD was supported by the inflation data from TD Securities, showing that inflation has grown by 2.3% in January against the rise of 2.0% a month ago. Nevertheless, the rise in inflation amounted to 0.4%.

According to RBA, the core inflation in Q4 was at the bottom limit of the target range of 2%-3% at the level of 2.1%, the same at in Q3.

The data released today indicates that commodity index in January fell by 25.8% against 23.2% in December. It means that pressure on prices is reducing, and inflation is slowing down, allowing the Reserve Bank of Australia to reduce interest rates.

Trading tips

Sell Stop 0.7030. Stop-Loss 0.7080. Take-Profit 0.7010, 0.6950, 0.6910, 0.6860, 0.6810.
Buy Stop 0.7110. Stop-Loss 0.7040. Take-Profit 0.7140, 0.7200, 0.7245.

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