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
Real Time News
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today:
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here:
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here:
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency:
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency:
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here:
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here:
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here:
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here:
Australian Dollar Gains As RBA Leaves Interest Rates On Hold, As Expected

Australian Dollar Gains As RBA Leaves Interest Rates On Hold, As Expected

David Cottle, Analyst

Australian Dollar Reserve Bank of Australia, Talking Points:

  • The RBA kept its key Official Cash Rate on hold at its record low of 0.75%
  • That was what the market expected, having priced out the chance of a cut
  • Lower rates are still expected though

Join our analysts for live, interactive coverage of all major economic data at the DailyFX Webinars. We’d love to have you along.

The Australian Dollar as the Reserve Bank of Australia did as expected and kept its Official Cash Rate on hold at the record low of 0.75% in place since October 2019.

Australian Dollar Vs US Dollar, 5-Minute Chart

The chances of a move at this meeting had been dramatically cut by futures markets through January. The Australian economy has thrown out some fairly strong data in the last couple of weeks, with inflation rising for a fourth straight quarter and job creation strong.

Admittedly the headline optimism from both series masked serious underlying weaknesses. Full-time employment actually fell last month, with part-time roles accounting for all gains. Moreover, once volatile elements are stripped out, the Australian economy still lacks pricing power to an alarming degree. Inflation remains below target.

However, those headline figures may well allow the RBA to continue with its view that gradual recovery is in train without the need for much further stimulus. That said, futures markets still think rates are going lower again, probably in April.

The central bank stuck to standard fare in its statement, standing ready to ease policy if needed and expecting growth of 2.75% this year, 3% next. It sees inflation ‘close to 2%’ this year and in 2021.

The Australian Dollar has been hit hard by the general retreat from growth correlated assets which has accompanied headlines around the spread of coronavirus out of China. AUD/USD has fallen hard and fast this year, and is now flirting once more with eleven-year lows.

Australian Dollar Vs US Dollar, Daily Chart

It is possible that sentiment has weakened for reasons beyond the coronavirus, and that optimism had got out of hand toward the end of 2019. While the US and China have signed an interim trade deal, it’s no more than a tariff truce. A lasting settlement could yet be years away. The UK’s general election may have moved the Brexit story on after years of political gridlock, but a no-deal exit from the European Union remains possible.

The Aussie benefited from rising hopes on both counts and may now be suffering as reality bites. Indeed the RBA Tuesday cited US-China trade worries as well as coronavirus as sources of uncertainty for global growth.

While unlikely to explicitly welcome this development, the RBA may not be altogether hostile to it. A weaker currency is one of the best ways to import inflation. A central bank with an inflation mandate that it can’t hit can ill afford to be too fussy about how pricing power is generated, after all.

In any case, immediate market focus will now turn to RBA Governor Philip Lowe. He has been quiet in public so far this year but will speak in Sydney on Wednesday and give semi-annual testimony to parliament on February 7.

Australian Dollar Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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