The RBA has left overnight rates at 1.50% for the last 14 months. The overwhelming consensus is that they will leave rates unchanged at their meeting today.
RBA chief, Phillip Lowe, has been clear that even though other G-7 central banks are planning to lift rates in the future, that is not the path for Australia.
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With no expectations of an adjustment in rates, the market will focus on the board’s monetary policy statement.
Since the the RBA last met, there have been sharp falls in the prices of Iron Ore and Coal. In addition, the Chinese Sovereign credit rating has been downgraded.
Considering that the AUD/USD has traded modestly down to .7800 on the back of those developments, Mr Lowe could include comments on the level of the currency in the statement.
Investors looking to profit from a lower AUD/USD can buy the BetaShare ETF with the symbol: YANK.
YANK is an inverse ETF, which means the price of YANK increases as the AUD/USD trades lower. It also has a weighting of 2.5%, which means the unit price will fluctuate by 2.5% for every 1% change in the AUD/USD exchange rate.
With a current price of $13.10, we calculate that the price of YANK will be near $16.50 as the AUD/USD returns to the January low of .7160.
BetaShare ETF: YANK
