AUD Rose After RBA Held Rates

The Australian dollar rose sharply by more than one US cent after the RBA kept the cash rate on hold at 2% and toned down its rhetoric on the need for the currency to fall.

Shortly after 4pm, the currency was worth US73.77c, up from US72.64c at the start of the day as the RBA governor Glenn Stevens signalled the end of a long campaign to talk down the local unit’s value.

Over the past year Stevens has consistently said that it was “both likely and necessary” for the Australian dollar to depreciate.

But on Tuesday he softened the rhetoric in his statement following the RBA’s monthly board meeting on monetary policy, and simply noted that the dollar has “adjusted to significant falls in commodity prices”.

via The Guardian

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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