After the September meeting of RBA, the AUD/USD is trading significantly higher on Tuesday. Today the Aussie is rising higher against its US ally. Currently, the pair has reached 0.7644.
Today RBA finished its meeting. The rate has been kept at the anticipated level 1.5% per annum. The labor market doesn't signal anything decisive while improving in the short-term, RBA comments say. Earlier the Australian authority lowered its rate – in May and in August. Both these steps are enough to stimulate domestic demand. According to statistics, they work good enough.
Speaking about the value of Aussie, RBA noted that a low rate of Australian dollar gives support to the retail sector and trade industry as a whole. If Aussie rises, this can put difficulties for the local economy and slow down GDP growth rate.
In general, that’s true. The market reacted to the neutral RBA comments positively and noted signals showing effectiveness of the current monetary policy. Given a quiet background, the Australian dollar is climbing higher, but we wouldn't say it is a trend.
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