The Australian Dollar is rising after the RBA’s decisions. Overview for 02.07.2019

AUDUSD is recovering; the Reserve Bank of Australia cut the rate.

The Australian Dollar gained support against the USD after the RBA’s decisions during its July meeting. The current quote for the instrument is 0.6981. 

The July meeting of the Reserve Bank of Australia took place today and the regulator decided to cut the rate from 1.25% to 1.00%. However, this decision was pretty much expected, because the RBA signaled about it earlier. 

This decision has to support the Australian economy, which experienced some decline one way or another due to trade wars between the USA and China. China is Australia’s key trade and economic partner, and Chinese problems will become Australia’s one sooner or later. 

Yesterday, the Aussie fell significantly against the USD, but today it is recovering. 

The Australian economy has one real serious problem – low growth rate of household incomes, which slows down the country’s GDP growth. It’s a really key problem, given that the labor market in the country is stable – the private sector shows salary increase, but in the government sector, they barely grow.