The AUD/USD pair has been falling for the second consecutive day; the RBA’s comments made investors worry.
On Tuesday morning, the Australian Dollar is falling significantly against the USD. The current quote for the instrument is 0.7623.
Today, another meeting of the Reserve Bank of Australia was over. As a result, the regulator decided to keep the key rate intact, at 1.5%. Such decision is no surprise – earlier the RBA announced that the monetary policy terms was fine taking into account the targets for the GDP and the CPI.
However, the real surprise was the way the regulator was speaking about the behavior of the national currency. According to the RBA’s comments, if the Aussie is too expensive, it will be more difficult for the country’s economy to recover and expand. The RBA spoke about this long time ago, but over the last several months not a word was said about the behavior of the national currency. Today’s comments ruined the market’s buying mood and forced the AUD/USD pair into the correction.
The statistics published today showed that the Retail Sales in Australia expanded by 0.6% m/m in May after adding 1.0% m/m the month before. However, the expected reading was even worse. The gap with the April number didn’t alert the market, because the trend is improving actively. Food sales added 0.3% m/m in May, household goods – 0.5% m/m.
RoboForex Analytical Department