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Australian Dollar Fails to Hold Ground After RBA Meeting

September 4, 2018 at 10:07 by Vladimir Vyun

David Unaipon on Australian 50-dollar billThe Australian dollar attempted to hold its ground after the policy meeting of the Reserve Bank of Australia but failed and is now trading below the opening level. The worse-than-expected current account balance added to the downside momentum of the currency.

The RBA kept its main interest rate unchanged at 1.5% at today’s meeting. Such decision was widely expected by market participants. The statement did not provide many new insights, showing a largely positive outlook for the Australian economy, but suggesting that the central bank is going to keep interest rates at the current low levels for the time being:

The low level of interest rates is continuing to support the Australian economy.

Released separately, the current account showed a deficit of A$13.5 billion in the June quarter of 2018 — an increase from A$11.7 billion in the March quarter. Specialists were anticipating a decrease to A$11.1 billion.

AUD/USD dropped from 0.7210 to 0.7170 as of 9:58 GMT today, and its daily low of 0.7157 was the lowest since May 2016. EUR/AUD edged up from 1.6097 to 1.6115, bouncing from the daily low of 1.6039. AUD/JPY was down from 80.09 to 79.89, retreating from the daily maximum of 80.44.

If you have any questions, comments, or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.

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