AUD interest rate review on this Tuesday

AUD has been declined against major currencies since later January. GBPAUD 1.941, AUDUSD 0.7768 and AUDJPY 91.05 at the moment, and those were around 1.860, 0.810 and 96.0 respectively.

Reserve Bank of Australia (RBA) will review the cash target rate on this Tuesday, 3-Feb at around 3:30 UTC. The interest rate has been at 2.50% since Aug-2013, which is the lowest rate in the last 20+ years.

According to RBA's comment for a last few months, the rate will not hike for next several months. The rate is expected to be unchanged for this review, however AUD is considered relatively higher than the level RBA expects and the interest rate could be cut further.

Already mentioned in previous posts, Australian economy strongly depends on Chinese demands. If Chinese demands start slowing down, RBA could cut interest rate further.