Will the RBA change monetary policy moving forward?

The Australian Dollar has had a strong run as of late, especially against the British pound as we’re currently seeing the Aussie trade at a 9 month high of £1.92.

This week could be critical for both AUD investors and anyone else considering a currency exchange involving the AUD as this Tuesday the RBA (The Reserve Bank of Australia) will meet to discuss monetary policy moving forward, and with the currency heavily gaining in value against the likes of Sterling as of late I think it’s possible that the RBA could look to intervene in future.

Looking back at a 3 month chart AUD has also seen a lot of volatility when paired with the strengthening US dollar, and with US Non-Farm payroll figures out this Friday I’m expecting further volatility between the pair adding to the potential swings in the value of AUD this week. Last Friday saw a key support level broken with AUDUSD having its biggest drop in 4 weeks and with the crucial data releases due this week I think we could see further big moves between the pair.

Wednesday see’s Australian GDP data released and some analysts have suggested that the figure could come out just below the RBA’s annual 2.5% target, therefore those with a currency requirement involving Australian dollars could consider making the conversion earlier in the week as opposed to later, with data releases from down under along with Non-farm payroll and unemployment data coming out of the US on Friday leading the way for a hectic week the Australian Dollar.