Australian Dollar Has Declined. Overview 21.07.2017

The Aussi could have been quiet on Friday (there is no significant news today and no major economic events) if the local monetary politics hadn't made their contribution to the situation. Currently, the AUD/USD pair holds at 0.7922.

The Australian dollar started declining from its 14-months high after the deputy director of RBA Mr. Debel told he thought the last discussion on the basic rate had been too formal. On Friday the official told the basic rate was being kept neutral anyway and discussions on its value were only formal and had no sense. Such an approach doesn't have any effect on monetary policy.

To say the truth, the market players haven't had any special illusions on this issue, however, yet another pointing to the RBA's passive stance on the basic rate upsets the bulls. That said, the market could have ignored such opinions in case it hadn't seen such massive purchases.