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Aussie higher after RBA Statement

Tuesday, Apr 07 2015
As it was largely expected RBA left its interest rates unchanged in April at 2.25%. However it was noted that further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target."The Board will continue to assess the case for such action at forthcoming meetings." 
 
"In Australia the available information suggests that growth is continuing at a below-trend pace, with overall domestic demand growth quite weak as business capital expenditure falls. As a result, the unemployment rate has gradually moved higher over the past year. The economy is likely to be operating with a degree of spare capacity for some time yet. With growth in labour costs subdued, it appears likely that inflation will remain consistent with the target over the next one to two years, even with a lower exchange rate", it was said in the following statement.
 
As for exchange rates it was once again repeated that despite recent decline in Aussie "further depreciation seems likely, particularly given the significant declines in key commodity prices. A lower exchange rate is likely to be needed to achieve balanced growth in the economy."
 
After the decision and following statement the  Aussie was pushed sharply up and is currently being traded around 0.77 handle. Pair is likely to find support around 0.7650 and resistance above 0.7750 area. Later today, in the US session, JOLTS Job Openings figures are scheduled for a release.
More in this category: « Australian Retail Sales up by 0.7% Spanish and Italian Services PMI both rose in March »

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