[ForexNews]

The Reserve Bank of Australia (RBA) is widely expected to keep its cash rate unchanged at 3% at today’s policy meeting, but the market is expecting hawkish comments indicating the timing of an interest rate hike. Some remain of the view that the uncertainties facing the economy, such as terms-of-trade deterioration and the potential return of deleveraging, should persuade the central bank to maintain its current policy stance until mid-2010. Given that the market is looking for 191bps of rate hikes over the coming 12 months, a relatively neutral statement should be bearish for the Australian dollar (AUD). Technically, short-term momentum indicators are bullish, with resistance at the high from 14 August at 0.8478 and support at the 55-day moving average (MA) currently at 0.8166.