AUD Gains After RBA Leaves Rates Unchanged
Dailyfx | Mar 03, 2015 02:03AM ET
Talking Points:
- Aussie Dollar climbed as much as 1% after rate decision
- RBA leaves rates unchanged at 2.25% vs 2.00% cut expected
- RBA says further easing may be appropriate over period ahead
The Australian Dollar climbed as much as 1 percent versus the US Dollar after the Reserve Bank left rates unchanged. The markets were pricing in a 61 percent chance that the bank would cut rates. While rates were left unchanged, they are still at record lows. Follow-through for the Aussie will be far from certain in part due to the release of US Employment data this Friday. Currency Strategist Ilya Spivak says oncoming pressure on the US Dollar may amplify strength for the Australian counterpart.
The bank judged that it was appropriate to hold rates for the time being. RBA expects inflation to remain consistent with their target over the next 1 to 2 years. On the downside, the Central Bank sees an economy with spare capacity for some time yet. Domestic growth remains overall quite weak and the Australian Dollar is above its fundamental value given commodity prices. RBA mentioned that further easing may be appropriate over the period ahead. A further cut in monetary policy appears to be largely dependent on oncoming data.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.