The Australian dollar fell against the Japanese yen today after the Reserve Bank of Australia reduced its inflation and growth forecasts. The currency gained versus its US counterpart.
The RBA predicted that Australian economic growth will be “below trend” near 2.5 percent in 2013, down from the previous projection of 2.75 percent. Consumer price inflation is expected to reach 3 percent by June 2013, while price growth of 3.25 percent was expected earlier. The statement followed the RBA comments that “growth likely to be a little below trend over the coming year”, adding to chances that the central bank will perform an interest rate cut soon.
AUD/USD rose from 1.0278 to 1.0318 as of 13:48 GMT today after touching the low of 1.0254 — the weakest since October 24. Meanwhile, AUD/JPY went down from 96.22 to 95.54.
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