On Tuesday, AUDUSD is trading upwards; the Reserve Bank of Australia decided to keep the rate intact.
After a short pause, the Australian Dollar is back to rising against the USD. The current quote for the instrument is 0.6928.
During today’s meeting, the Reserve Bank of Australia didn’t change its monetary policy. The interest rate remained at 0.75% and the regulator mentioned one of the most uncertain factors in the national economy, consumer spending.
It is known that the RBA is going to keep its low rates for a very long time. at the same time, market expectations Imply that the rate may be cut once early in 2020. After that, the regulator may revise its economic outlook. The rate cut may help to revive inflation.
Yesterday, Australia reported on the Retail Sales, which added 0.2% m/m in September after showing +0.4% m/m in the previous month and against the same expected reading: cafes, restaurants, and takeaway foods added 0.6%, while department stores lost 0.2%.
Overall, in the third quarter, the indicator lost 0.1% q/q after adding the same number in the second one. Consumer spending in the Australian economy remains a problem, which can be explained by complicated external market conditions. As a result, market expectations concerning the fourth quarter reading are very positive.