Aussie Weakens Ahead of RBA Monetary Policy Decision

The Australian dollar fell today as Forex market participants anticipate an interest rate cut by the Reserve Bank of Australia tomorrow.
The Australian central bank will hold a monetary policy meeting tomorrow. Most analysts expect the bank to decrease the main Cash Rate to 4.50 percent from the current level of 4.75 percent as the unfavorable state of the global economy, most importantly the crisis in Europe and the economic slowdown in China, make the current high level of the interest rates unsustainable. The dovish outlook weakened the Aussie, yet Australia’s dollar gained against the yen, similarly to other currencies, after Japan’s intervention.
AUD/USD fell from 1.0707 to 1.0596 today as of 17:01 GMT, while the intraday minimum was 1.0505. AUD/JPY climbed from 81.03 to 82.60 after reaching the daily high of 83.95.

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