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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Australian Dollar Higher as Rates on Hold, Growth Close to Trend

Australian Dollar Higher as Rates on Hold, Growth Close to Trend

Christopher Almeida,

THE TAKEAWAY: The Australian Dollar rallied after the RBA decided to keep rates on hold at 3.00 per cent citing 2012 domestic growth being close to trend, as well as lessened global risks.

_Australian_Dollar_Higher_as_Rates_on_Hold_Growth_Close_to_Trend__body_RBAMARCH052013.png, Australian Dollar Higher as Rates on Hold, Growth Close to Trend

Created Using Marketscope 2.0

The Reserve Bank of Australia has kept the cash rate at 3.00 per cent which was in line with market expectations. The Australian Dollar rallied, as the statement by Governor Glenn Stevens mentioned stabilizing Chinese growth as well as reduced downside risks seen globally.

The statement released by the Reserve Bank outlined improvements in both the American and European economies, as well as reiterating the significant easing that took place in 2012 which is still due to become more apparent. Stevens did warn however, that given the slight softening of the labor market, unemployment edging higher, and growth due to be just below trend this coming year, the RBA would take an accommodative stance of monetary policy. Finally, given the inflation outlook as at present, the Reserve Bank affords scope to ease policy further.

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

DISCLOSURES