The Reserve Bank of Australia is expected to maintain stability! If a future interest rate hike signal is released, the Australian dollar will challenge 0.6700.

Forex Platform- On June 18 (Tuesday) at 12:30 Beijing time, the Reserve Bank of Australia will announce its interest rate decision. According to an article written by the analyst team of the FXStreet website, economists generally expect that the Reserve Bank of Australia will maintain interest rates at a 12-year high on Tuesday, and the central bank governor Block may maintain his hawkish remarks at the press conference.

In order to avoid the stickiness of inflation, the Reserve Bank of Australia may leave the door open for a rate hike this year, especially after meeting notes in May showed board members considering a rate hike.

However, the Reserve Bank of Australia may not signal a clear policy shift at its upcoming meeting, but maintain the view of "raising interest rates for a longer period of time".

So, how will the RBA's interest rate decision affect the Australian dollar against the US dollar?

After hitting another resistance of 0.6700, the AUD/USD started to weaken. If Reserve Bank of Australia President Block clearly signals a rate hike at the upcoming meeting, the AUD/USD could rise again towards the above key resistance level.

On the other hand, due to the failure of the Reserve Bank of Australia to confirm hawkish expectations, the AUD/USD may continue its continued downtrend, testing 0.6500. Therefore, the wording in the policy statement and Block's comments may determine the next move of the AUD/USD.

Ahead of the RBA showdown, big banks including ANZ and Socie ́ te ́ Ge ́ ne ́ rale have pushed back the likely timing of the RBA's first rate cut from November to early 2025.

Dhwani Mehta, chief analyst at FXStreet Asia Conference, pointed out that key technical indicators for the AUD/USD depend on policy outcomes. The AUD/USD is expected to challenge the key demand area around 0.6650, which hovers near the 100- and 200-day moving averages. The Relative Strength Index (RSI) fell below 50 on the 14th, indicating that the AUD/USD will have a clear downward path ahead of the RBA interest rate decision.

The AUD/USD needs to hold the key support near 0.6550 in order to attempt a rebound towards the 21-day moving average at 0.6635. The next upside resistance for the pair is at 0.6700. Conversely, if the lower pair falls below the 0.6550 support area, it may trigger a new downtrend, further falling towards the 0.6500 level. The next downside target is at 0.6477, the low of March 5.

Australian dollar/US dollar daily chart

At 8:34 on June 18, Beijing time, the Australian dollar was trading at 0.6617/18 against the US dollar. The above is all about the stability of the Reserve Bank of Australia. Those who are interested can continue to pay attention to the foreign exchange documentary platform.