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.

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
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • RT @macrodesiac_: If you know you know. https://t.co/W2LYqathr5
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: US 500: -1.45% Wall Street: -1.78% FTSE 100: -3.03% France 40: -3.10% Germany 30: -3.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Yt3BFBNgjZ
  • ECB's Lagarde says Euro appreciation places downward pressure on prices, adds that the ECB are attentive to the Euro's appreciation $EUR
  • Italy regional vote - Exit poll sees centre left narrowly ahead of right in Tuscany vote
  • ECB's Lagarde says the ECB will open consultation on digital Euro within days
  • US President Trump says in regard to TikTok that China must give up on control or no deal
  • 🇨🇦 New Housing Price Index YoY (AUG) Actual: 2.1% Previous: 1.7% https://www.dailyfx.com/economic-calendar#2020-09-21
  • 🇺🇸 Chicago Fed National Activity Index (AUG) Actual: 0.79 Expected: 1.95 Previous: 1.18 https://www.dailyfx.com/economic-calendar#2020-09-21
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.77%, while traders in NZD/USD are at opposite extremes with 72.74%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/LGODzLXvvD
  • LIVE NOW: Join Technical Strategist @MBForex for his Weekly Strategy Webinar to review the setups we're tracking into the open of the week! https://t.co/chKtG7waxH
Australian Dollar Muted on Neutral RBA, Economic Data Risk Ahead

Australian Dollar Muted on Neutral RBA, Economic Data Risk Ahead

2017-06-06 05:12:00
Daniel Dubrovsky, Analyst
Share:

Talking Points:

  • Australian Dollar little moved following the RBA monetary policy announcement
  • The central bank left rates at 1.50%, seeing it at a proper level for the economy
  • Australian GDP data is due on Wednesday, China CPI and trade balance follow

What do retail traders’ buy/sell decisions hint about the Australian Dollar trend?Find out here.

The Australian Dollar showed a muted response to June’s Reserve Bank of Australia monetary policy announcement. Heading into the event, the markets were not pricing in a rate adjustment. The same could also be said for the 12 month outlook. Thus, the key takeaway from this interest rate decision would have been the forward guidance.

The RBA reiterated that taking into account the available information, interest rates are where they need to be for sustainable growth in the economy and achieving the inflation target over time. They added that there are some signs that brisk housing growth is starting to ease. Not absent yet again from the details was that an appreciating Aussie Dollar would complicate the economic adjustment.

With a lack of clear cut bias for interest rate direction in the near-term, attention turns to events that may catch the eyes of board members. Australia’s first quarter GDP is due this Wednesday. The markets see on year growth slowing down to levels not seen since 2009. The central bank also noted that a slowdown is to be expected. Interestingly, a larger than expected current account deficit has increased the chance of a GDP growth miss recently.

Looking outside of the border, Chinese CPI and trade balance data are on the docket for Thursday and Friday respectfully. As Market Analyst David Cottle mentioned, the Australian Dollar remains vulnerable to the country’s largest trading partner.

Australian Dollar Muted on Neutral RBA, Economic Data Risk Ahead

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

DISCLOSURES