The Reserve Bank of Australia decided to leave rates unchanged. While it left the door to more cuts along the road ahead, it didn’t seem to eager to use the tools in its shed and relatively calm on the situation of the Australian economy.
The result is a stronger Australian dollar, with AUD/USD rising above 0.72, yet doubts remain.
The RBA sees the A$ as adjusting to significant declines in key commodity prices. There is scope for further easing if needed and they will continue assessing whether the current rate setting is effective.
The break above 0.72 is not confirmed yet. Further levels above are 0.7280 and 0.74. On the downside we have 0.71 and 0.7065. Note that on the around the announcement, the pair danced around and event fell to 0.7110 before shooting higher. The high so far is 0.7212.
More: AUD/USD towards 0.68 and below until year end – Credit Agricole
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