AUDUSD is falling on Tuesday after the RBA meeting, the results of which were rather neutral.
The Australian Dollar is retreating a little bit against the USD after the October meeting of the Reserve Bank of Australia was over. The current quote for the instrument is 0.7171.
During today’s meeting, the Reserve Bank of Australia decided to keep its current monetary policy intact. The interest rate remained unchanged at 0.25% but it wasn’t expected to be revised anyway. Market players didn’t like the RBA’s comments relating to its intentions to give meticulous attention to the aspects ща economic stimulus.
According to the Australian regulator, it is important to foresee different scenarios of further economic stimulus in the country. It is necessary for providing the labor market with a margin of safety when creating new jobs. This, in turn, may later help to stabilize recovery processes in the economy in general.
Investors are keeping a close eye on the budget agreement in Australia for the 2020-21 fiscal year, which is expected to have a deficit in the amount of 200B AUD (143.6B USD) – it’s the biggest budget deficit in Australia over the last 70 years. In addition to that, in the nearest future, the Treasurer of Australia may clear up the matter with supportive measures for the country’s economy.
It is not beyond the reach of reason to suggest that the RBA is really considering an option with the rate cut and expansion of the QE in the months to come.
This is exactly what is dragging the Aussie down right now.