The AUD/USD pair responded to the results of the RBA meeting and right now is being corrected slowly.
On Tuesday afternoon, the Australian Dollar is slowly retreating in the pair with the USD. The current quote for the instrument is 0.7668.
Today, another meeting of the RBA was over. Nobody expected anything extraordinary, but the meeting was interesting from another point of view – new Reserve Bank of Australia Governor, Philip Lowe. The regulator made a decision to keep the interest rate unchanged at 1.5%. Mr. Lowe emphasized that after the rates had been reduced (in August 2016), they would remain the same for a while. According to his words, what had been done would anyway improve the economic situation and help to reach the inflation targets.
The RBA Governor was replaced last month, when Mr. Lowe took over Glenn Stevens, who headed the Central Bank for quite a long time. Markets knew and understood Stevens’ monetary approach: in most cases, the regulator was proactive and changed the rate preventively. Possibly, thanks to this flexible approach the Australian economy looks so stable.
So far, Lowe’s approach is quite similar to Stevens’, but the current situation is not critical and requires no serious decision to be made, that’s why now it’s rather difficult to estimate future outlooks. .
The RBA emphasized once again today that the high-flying Australian Dollar prevented the country’s economy from improving, but the Aussie was resistant to such verbal interventions as usual and didn’t respond to them.
RoboForex Analytical Department
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