The AUD/USD pair barely responded to the meeting of the RBA and its monetary decisions.
On Tuesday morning, the Australian Dollar is trading a little bit to the downside against the USD. The current quote for the instrument is 0.7674.
The November meeting of the Reserve Bank of Australia was pretty quiet and predictable. The interest rate didn’t change, it’s still 1.50%, just as expected. According to Philip Lowe, the RBA Governor, the global economy is improving, which is very good for Australia as well. However, there are still some doubts about this. On one hand, the Chinese economy, which is very important for Australia, is quite stable thanks to expansion of infrastructural expenses and construction. On other hand, internal trading conditions in Australia may get worse in the mid-term.
All key economic parameters remained unchanged. The RBA’s forecast implies that the country’s GDP will increase by 3% y/y on the average in the next three years. The regulator expects more investments into the state infrastructure and manufacturing to support the economy. However, the issue of household spending is still kept open, but there is no sense to expect the faster economy growth until this sector isn’t showing some steady improvement.
The inflation in Australia is rather low, less than 2%; the core inflation is not very high as well. The regulator’s rhetoric concerning the Aussie rate also remained the same: according to the RBA, the AUD has strengthened against the USD since the beginning of the year. The higher the exchange rate, the stronger the price pressure in the economy and the slower the GDP improvement.
Overall, there was nothing new for the Aussie in these comments, this is why it barely responded to the results of the RBA November meeting.
RoboForex Analytical Department