Author: Dennis Li
The AUD/USD enjoyed an initial and somewhat brief rally above 0.7200 immediately after the RBA decision to keep rates on hold for the 25th consecutive month. It didn’t take long for the dominate concerns of trade wars, a decline in emerging markets particularly Argentina and South Africa, interest rate differentials and robust US economic data to override any positive statements from the RBA.
In its statement yesterday the RBA displayed no shift in tone maintaining the line that growth outlook remains at about 3%, inflation picking up slowly and with unemployment possibly reaching 5% by year’s end.
Keeping with the short lived theme, we also saw the AUDEUR touch its high of 0.6233 before tumbling back below 0.6200 overnight. Our GDP data released this morning at 11:30 Sydney time is expected to maintain the volatile tone.
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