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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Australian Dollar Gains Despite RBA Interest Rate Cut

Australian Dollar Gains Despite RBA Interest Rate Cut

Daniel Dubrovsky, Contributing Senior Strategist

Talking Points:

  • RBA Cuts Key Rate by 25bps to 2 percent as Expected on Inflation Outlook
  • Improvements in Household Demand, Employment May Limit Further Cuts
  • Australian Dollar Pushed Broadly Higher, Adding Nearly 1% vs. US Dollar

The Australian Dollar gained nearly as much as 1 percent versus its US counterpart despite an RBA interest rate cut. The movement higher came after the central bank saw improving trends in household demand and growth in the employment sector, hinting that the chances of further easing in the upcoming months may be relatively low.

The Reserve Bank judged that the inflation outlook provided the opportunity to ease further. The RBA cut its cash rate target by 25 basis points to a record low 2 percent as expected. Commenting on the exchange rate, the bank argued that further depreciation of the Australian Dollar seems likely and necessary. It also sees the economy operating with spare capacity with some time yet.

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