AUD/USD Is About to Challenge March High

May 28th, from WikiFX News. Aussie‘s performance beat most of G10 currencies in May. Technically, AUD/USD breached April’s range and is heading towards March high with a positive outlook.

June 2nd will see Reserve Bank of Australia release its interest rate decision, which will likely remain unchanged according to market expectation. Previously, the reserve bank board agreed that the policy package is working as expected, and board members consider the best approach to be maintaining the current policy arrangement and keep a close watch on the economic and financial results. In the following months, RBA will possibly maintain the present stance while carefully observing any new change.

Whether the large-scale fiscal and monetary policies will bring the economy to a V-shape recovery is still a question, and should the economy fail to rally as expected, the central bank will be under pressure and faces challenge in taking further measures to support economy. We expect Australias GDP to shrink about 10% in the first half of 2020.

In conclusion, if the RBA resume a mild forward guidance, the Aussie will possibly face downside risks.

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