Australian Dollar Little Changed After RBA Keeps Rates Unchanged

THE TAKEWAY:RBA keeps rates unchanged > Suggests economic activity on par with growth trends > Australian dollar little changed

The Australian Dollar was little changed after the Reserve Bank of Australia (RBA) kept the overnight borrowing rate unchanged at 3.5%, falling in line with market expectations which priced in an 86% chance for no cut. The decision to keep rates unchanged likely reflects strengthening data which suggests the economy continued to grow “somewhat stronger than had been earlier indicated,” according to Governor Stevens.

AUD/USD, 1 Minute Chart