The Reserve Bank of Australia left interest rates unchanged as widely expected and made no earth shattering statements.
Despite yet another mention of the strength of the Aussie, the currency does not weaken but rather ticks up.
Glenn Stevens and co. left the key messages about interest rates unchanged “prudent course is a period of stability in ratesâ€. This isn’t news. They also said that inflation is set to be consistent with target and most data is is consistent with moderate economic growth. They mentioned rising house prices but did not seem to be alarmed.
Regarding the Aussie, they still see it as “above estimates of fundamental value†especially given the falling commodity prices. The A$ did slide together with iron and copper prices, but it’s hard to say it plunged as they did.
AUD/USD is currently trading at 0.8537, which is the previous low the pair reached before digging into lower ground. So, at the moment the pair is tackling resistance and recovering from the lows after beginning the week at new lows around 0.8420.
Beyond 0.85540, the round number of 0.86 is resistance. Support is found at 0.8480 followed by 0.8420. For more, see the AUDUSDÂ prediction.
In other data released earlier, building approvals jumped by 11.4%, better than 5.2% expected. The current account also beat with a deficit of only 12.5 billion instead of 13.5 billion expected.
There are more big releases in Australia, most notably quarterly GDP. See how to trade the Australian GDP with AUD/USD.
