August seasonals set the table for an interesting RBA decision

August is a tough month for the Australian dollar

The minutes are counting down on July but the Australian dollar bulls wish it was a month that would last forever. The Aussie was the top performer in the month but the switch could soon be flipped.

All eyes are on the RBA decision at 0430 GMT and that is likely to set the tone for AUD/USD for the month ahead.

If seasonals are any indication, it will be a tough month. AUD/USD has declined in 10 of the past 12 Augusts and the average decline in the past decade was 1.05%.