On Tuesday morning, the AUD/USD pair plummeted after the RBA’s decision relating to the interest rate, but investors won back some part of the sales quickly.
The Australian Dollar is trading to the upside on Tuesday afternoon, although a couple of hours ago it was being sold actively. The current quote for the pair is 0.7573.
During today’s meeting, the head of the Reserve Bank of Australia made a decision to decrease the interest rate by 25 basis points. Now it’s 1.5% p.a. in the comments to the decision, the RBA said that the local economy is growing slowly, the inflation is tending to be low, salaries are increasing not as fast as one desires. Despite the fact that the risks relating to the real estate market reduced, prices are rising slowly, and home mortgages are approved with more caution than earlier. Regarding China, the main trade and economic partner of the country, the Australian Central Bank mentioned more reserved economic expansion rate.
It‘s important that this time the Central Bank particularly emphasized the decline of investments volume: the less the capital inflow indicator, the less one can hope for a healthy growth of the entire system. In view of this, the decision to decrease the rate doesn’t look strange.
The information on Australia’s trade balance in June published today also indicates some internal difficulties. The equity was -3.19 billion against the predicted number of -2 billion. Reduction in trade parameters usually involves nothing good and positive.
RoboForex Analytical Department
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