RBA Surprises by Omitting AUD/USD’s Recent Decline

As widely expected, the central bank held interest rates at a record low of 2.5 percent, where they have been since August last year, and maintained that it was “prudent to have a period of stability in rates.”

But the RBA said the Aussie dollar remained high by historical standards, despite the currency sliding more than 6 percent against the U.S. dollar in the last month, to trade at $0.8748 Tuesday.

“The statement today is much more of a ‘cut and paste’ of recent months,” said Annette Beacher, economist at TD Securities. “We were all looking for a phrase along the lines of a ‘depreciation of the Australian dollar will help with the economy’ [because] that’s the phrase they used regularly… so that entire phrase or tone was missing today.”

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