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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/ZJOEtpGUIq https://t.co/7ueAF5qR8C
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.74%, while traders in EUR/USD are at opposite extremes with 74.85%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Vakm17zSSC
  • Heads Up:🇺🇸 MBA Mortgage Applications (20/NOV) due at 12:00 GMT (15min) Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-11-25
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.11% Silver: 0.55% Gold: 0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nwOjSyoAbq
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: -0.03% 🇯🇵JPY: -0.04% 🇨🇭CHF: -0.09% 🇨🇦CAD: -0.18% 🇦🇺AUD: -0.30% 🇬🇧GBP: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/zrfx5KPV5X
  • EU's Šefčovič: says Brexit talks are difficult but constructive $GBP
  • 🇫🇷 Unemployment Benefit Claims (OCT) Actual: -56.6K Previous: -15.2K https://www.dailyfx.com/economic-calendar#2020-11-25
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: France 40: -0.17% US 500: -0.18% Wall Street: -0.25% Germany 30: -0.36% FTSE 100: -0.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/arymbmpUKF
  • Heads Up:🇩🇪 Bundesbank Wuermeling Speech due at 11:15 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-11-25
  • As a trader do you know when the markets let you take a break? Find out when the stock markets are closed. Check out @DailyFX holiday calendar here. https://t.co/M3ndtjxrOd https://t.co/EZ7emLN3F6
Australian Dollar Slips As RBA Holds Rates, Focus Now On GDP

Australian Dollar Slips As RBA Holds Rates, Focus Now On GDP

2017-09-05 04:54:00
David Cottle, Analyst
Share:

Talking Points:

  • The RBA left interest rates on hold, as it was expected to
  • It did however worry anew about AUD strength and its likely impact on growth and jobs
  • AUD/USD had been rising, but that process was duly stymied again

Just getting started in the AUD/USD trading world? The DailyFXbeginners’ guide is all yours.

The Australian Dollar slipped a little Tuesday after the Reserve Bank of Australia again fretted its strength.

The RBA left its Official Cash Rate on hold at a record low of 1.5%, as it had been universally expected to do. It is still worried about the sustainability of growth and, above all, about Australian consumers’ enormous debt levels. It judged that unchanged rates were consistent with its growth and inflation targets.

However, it also took the chance to say that the Australian Dollar’s elevated exchange rate was likely to weigh on inflation, but also on job creation and economic growth. This is nothing new. The RBA has been worried about the Aussie’s altitude since it rose to more than two-year highs this year. Some of that strength is of course no more than a function of US Dollar weakness, as the central bank again admitted.

All up the RBA’s statement changed very little for the currency whose fall seems to have been arrested already, mere minutes after the release. Markets remain of the view that the next OCR move will be an increase, but that there is little chance of that before well into next year.

Australian Dollar Slips As RBA Holds Rates, Focus Now On GDP

The Australian Dollar got a lift earlier after its home nation’s second-quarter balance of payments data raised hopes that Thursday’s official Gross Domestic Product release might come in better than had been feared. The current account deficit ballooned way beyond expectations, but investors chose instead to focus on exports’ share of GDP growth. That rose to 0.3%, having deducted 0.7 percentage points from the first-quarter’s figure.

More broadly AUD/USD has traded a particularly narrow range through August and into September as RBA rhetoric about currency strength has seemed to keep a lid on the cross. However, it is now inching toward the top of that range and Wednesday’s GDP release will now be key. Strength is likely to pose a fresh challenge for the central bank and see a wave of fresh demand for the currency. Weakness on the other hand will probably see the established range trade grind on.

Australian Dollar Slips As RBA Holds Rates, Focus Now On GDP

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX

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

DISCLOSURES