On Tuesday, AUDUSD is actively correcting and recovering from the lows of October 2019.
The Australian Dollar is growing against the USD on Tuesday. The current quote for the instrument is 0.6718.
During its February meeting, the Reserve Bank of Australia decided to keep the key interest rate unchanged at 0.75%. in the comments that followed, the regulator said that it would be ready to loosen its monetary policy if it was necessary to boost the economic growth. However, given the current market environment, the rates will remain low for a long time.
According to the RBA, record-low rates have a negative influence on the national currency.
The regulator estimates the country’s economic growth at 2.75% in 2020 and 3% In 2021. The inflation is expected to be approximately 2% this year.
Among the risks that may influence the country’s economic growth, the RBA mentioned forest fires and the Chinese coronavirus outbreak. At the moment, it’s too early to estimate how much longer the coronavirus will have such a significant influence. However, it’s quite obvious that the virus is another source of uncertainty from the outside, along with trade talks between the USA and China.
The RBA was pretty confident in the Australian economy stability and this time it worked for the Aussie.