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.

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
More View More
Aussie Dollar Rebounds as RBA Disappoints Dovish Hopes

Aussie Dollar Rebounds as RBA Disappoints Dovish Hopes

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • Aussie Dollar gains after RBA maintains neutral, data-dependent stance
  • AUD/USD rally seems to suggest traders were looking for dovish posture
  • Losses after soft China PMI data retraced, focus turns to 4Q GDP data

The Australian Dollar erased overnight losses after another neutral RBA monetary policy announcement. While no change in rates was expected, traders seemed to be speculating that a recent deterioration in economic metrics would spur a dovish shift in rhetoric, paving the way for easing in the months ahead.

Governor Glenn Stevens and company opted for the status quo however, judging the current setting policy as appropriate to deliver continued growth with inflation close to target. The door for easing was left open however, with Stevens saying that low inflation offers scope for rate cuts should that be appropriate.

The Aussie was on the defensive ahead of the RBA announcement after a disappointing set of Chinese PMI figures. The data set showed the manufacturing sector contracted at the fastest pace since November 2011 while services growth hit the weakest since the Great Recession trough in 2008.

--- Created by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

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

DISCLOSURES