As expected nothing new from the RBA which decided not to change both interest rate, at 1,5%, and the Official Cash Rate (OCR).
“Taking account of the available information, and having eased monetary policy at its May and August meetings, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.” – from the RBA notes.
Reasons for this non-move the slow bot continuous growth of the global economy at a worse than expected pace. Despite some developed Countries have registered during last year an improvement of the economic conditions, a big number of Emerging Countries still have big economic difficulties. In addition Chinese policymakers decisions supported the growth of the Country, but at a moderate pace.
In Australia, recent data suggest that the growth is still continuing, despite a large decrease in investments, but particularly fueled by the increase in demand and export. The labour market still continue to give conflicting signals, even if there are the basis for an increase in the employment in the near term. On the inflation side, it still remains limited, with a slightly growth of the labour market costs helped by low costs pressures from all around the world.
At the moment the AUD/USD cross is traded with a negative performance of 0,54% at 0,7624 after having experimented an opening spike which led the pair to reach the weekly high at 0,7637.
Despite the small actual retracing the downside still remains limited, after RBA’s statement and better than expected macro data earlier in the day. The Q2 Current Account has decreased to -$15.5bn versus an expectation of -$20bn.
The eyes of the market for the moment still remains on the US LMCI and ISM data during later NY session which could give a slight direction to the AUD/USD cross too.
Pay attention to the resistance positioned at 0,7663 which could be the first hurdle on which the pair could stop and reverse.