The most recent decision from the Reserve Bank of Australia is helping the Aussie today. Additionally, expectations for an improved economy are helping the Down Under currency make some strides against its major counterparts.
The RBA decided to stand firm on interest rates today, disappointing some Forex traders and analysts who had been hoping for further easing after last month’s interest rate cut. The RBA is keeping the cash rate at 1.75 per cent. Even though that is a record low for Australia’s central bank, it’s still a higher interest rate than what many other major central banks are charging.
Expectations for another rate cut anytime soon are waning, especially following an RBA announcement that hints that further easing isn’t imminent. Policymakers believe that there is reasonably strong economic growth coming for Australia. There have been concerns about China’s slowing growth in recent months and in the last couple of years, but that hasn’t had a huge impact on policy. Recent gains for gold have also been helping to shore up the Aussie, which depends a great deal on the commodity for its support.
At 15:02 GMT AUD/USD is up to 0.7450 from the open at 0.7366. EUR/AUD is down to 1.5236 from the open at 1.5413. GBP/AUD is down to 1.9533 from the open at 1.9604.
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