The Australian dollar was unable to produce a clear trend today ahead of tomorrow’s monetary policy decision of Australia’s central bank. Aussie’s performance against the euro was more defined as the shared 17-nation currency outperformed most of its trading peers, including the Australian currency.
The Reserve Bank of Australia will announce its monetary policy decision tomorrow. Some analysts say that the bank will lower interest rates, while others claim that the borrowing costs will stay unchanged. The uncertainty kept the Australian currency in check.
Overall, today’s market sentiment was positive for riskier commodity currencies. The situation in Spain turned out to be not as bad as was thought earlier, making the euro the winner of today’s trading session, but dragging other growth-related currencies along to the upside. The Aussie was constrained, though, by the news from China. Manufacturing of the Asian country showed signs of decline, damping prospects for Australian exports to its major trading partner.
AUD/USD was slightly up from 1.0362 to 1.0374 and AUD/JPY posted a meager gain from 80.78 to 80.93 as of 18:22 GMT today. EUR/AUD ticked up from 1.2389 to 1.2420.
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