RBA sees Period of Interest-Rate Stability, AUD/USD Focus on Key US Data
- RBA Keeps Accommodative Monetary Policy, Interest-Rates on Hold for Some Time
- Australian Dollar Little-Changed vs US Dollar on RBA Statement
- Aussie Dollar at Risk as US News-Flow Boosts Fed Normalization Bets
The Reserve Bank of Australia (RBA) kept its benchmark lending rate unchanged at 2.50 percent, putting the spotlight on the statement released following the sit-down.
“Monetary policy remains accommodative,” said the RBA in a statement, “inflation is expected to be consistent with 2%-3% target, and we see a period of interest-rate stability.” The RBA has left the cash-rate at a record low since August 2013.
“Signs of improvement in non-mining investment is tentative,” said the RBA, “[there] are signs of moderation in pace of house price increases.”
On the job front the RBA sees some time before unemployment declines consistently, and expects Australia growth to be somewhat firmer around turn of the year.
DailyFX Strategist Ilya Spivak holds a bearish outlook for the Australian Dollar, citing Australian economic data has increasingly underperformed relative to market expectations. He does not see the RBA in a hurry to change their policy stance. Traders may look to US news-flow for directional cues on AUD/USD.
The technical perspective suggests the Australian Dollar is vulnerable to deeper losses after the rate broke below support at the bottom of a rising channel set from late January, according to Spivak.
AUD/USD 5-minute – using FXCM Marketscope 2.0.
-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to email@example.com.
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