AUDUSD plummeted on Tuesday after the RBA’s comments.
The RBA’s comments forced a negative response in AUDUSD. The current quote for the instrument is 06678.
Earlier today, the Reserve Bank of Australia published its Monetary Policy Meeting Minutes, which investors didn’t like at all. The document said that the regulator was ready to continue cutting the rate if necessary. However, the current period of low interest rates is still needed by the country’s economy, that’s why it will continue as long as it has to.
According to the Australian regulator, another rate cut may boost inflation and help the labor market. If the regulator is speaking about it, then the decision has already been made and the RBA is just waiting for the right time.
Of course, the RBA is very worried by the Chinese coronavirus issue, which is considered as a new source of uncertainty for the global economy in general, and for China and Australia in particular.
Moreover, the RBA mentioned forest fires, which took place in the country this January. According to the regulator’s estimations, the negative influence of this aspect will be seen in the numbers for the 4th quarter of 2019 and 1st 0f 2020.
In other words, there was nothing in the document that might support the Aussie and help it to reach stability.