Reserve Bank of Australia cuts rate by 100bps strenghtens AUD

Yesterday’s post on Australia and New Zealand cut expectations came true for the RBA.

The Reserve Bank of Australia  announced a 100 basis points cut. The official cash rate is now 4.25%. This has been the fourth rate cut since September. The market was expecting a  75 basis points rate cut in order to decrease the interest rate differential between the current Australian rate 5.25% and the Fed 1.00%. The higher than expected cut temporarily boosted the Australian Dollar and depreciated the New Zealand dollar in early trading.

For more Australian Economic Indicators visit FXEconostats Australian Data

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza