Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
Australian Dollar Gains as RBA Maintains Neutral Policy Stance

Australian Dollar Gains as RBA Maintains Neutral Policy Stance

Daniel Dubrovsky, Contributing Senior Strategist

Share:

Talking Points

  • RBA Leaves Key Rate Unchanged at 2 percent as Expected
  • Australian Dollar Pushed Higher, Climbing 0.7% vs. USD
  • Policy Statement Maintains Neutral, Data-Dependent Tone

The Australian Dollar climbed as much as 0.7 percent versus its US namesake after the Reserve Bank left rates unchanged in June. Although markets were expecting no rate cut, there was speculation building that the central bank would turn more dovish in the near term. Australian economic news flow has been deteriorating relative to expectations since the beginnig of April.

Despite this, the RBA maintained a rather neutral stance on its monetary policy. In its statement, the bank saw improvements in household spending and a rise in exports. Public spending is expected to be subdued and the overall economy is likely to be operating with a degree of spare capacity for some time yet. In these circumstances, the Reserve Bank said monetary policy will need to be accommmodative. While this hints that furher rate cuts may be ahead, policymakers stressed that any such decision will be dependent on incoming data, offering no distinct bias for the near term.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES