As expected the RBA decided not to change the interest rate keeping it @ 1,5% with the Central Bank’s words pretty neutral and for the first time with Governor Lowe on the chair.
Following the RBA “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.”
Regarding inflation, moreover, the RBA says it “remains quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.”
Looking at the AUD level, the Central Bank reiterate its opinion not to prefer a stronger price, which could complicate the economic adjustment process.
In the meantime the Aussie moved up against the US Dollar, keeping the AUD/USD higher after a brief dip pre-RBA which led the cross to the daily low @ 0.7667.
After recovering the losses, at the time of writing the cross is traded with a neutral performance @ 0.7674 with the first immediate resistance positioned at 0.7691 (daily high). On the other hand the first significant support is seen at 0.7653 (10-DMA).
A stronger positive move against the Japanese Yen, with the AUD/JPY which gained the 78.58 level pre-RBA, before losing momentum. At the time of writing however the performance is still 0,44% positive @ 78.3375.
A breaking of the 78.67 level could led the cross to the resistance positioned at 79.13 (6 September high), which could represent a good opportunity to se a temporary retracement of the cross.