The Australian dollar edged higher today following the monetary policy policy meeting of Australia’s central bank. The currency shrugged off negative economic data, both domestic and overseas.
The Reserve Bank of Australia left its key interest rate unchanged at 2%, surprising no one. The bank suggested in the statement that policy easing is still possible:
Continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand.
Yet traders preferred to look at the bright side of things, ignoring the prospect for additional accommodation as well as lackluster manufacturing data from China and several poor macroeconomic reports from Australia.
AUD/USD was up from 0.7139 to 0.7162 as of 12:44 GMT today. EUR/AUD ticked down from 1.5221 to 1.5176, and its daily low of 1.5117 was the lowest since January 6.
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