The Reserve Bank of Australia meets tomorrow and
they are widely expected to maintain the cash rate at 0.25% and continue
to target the 3-year government bond yield at 0.25%.
The market will focus on RBA Governor Philip Lowe's statement, which will likely be very similar to the September statement.
The RBA decision and statement should be a non-event for the Australian dollar.
The AUD/USD broke higher on Friday when the USD broadly weakened, but the AUD and NZD were the best performing currencies.
Sentiment towards the AUD/USD is bullish and will likely continue to be after the RBA event.
AUD is getting support from buoyant risk appetite that has pushed
global equity markets to record highs, dovish Fed expectations and
strong commodity prices .
The RBA would like the AUD/USD lower, but they have repeatedly said the 30%-plus appreciation since the March low is justified based on fundamentals.