The Australian dollar jumped today after the Reserve Bank of Australia conducted its monetary policy meeting and released rather positive statement afterwards. The worse-than-expected trade balance did not hurt the performance of the Aussie to any noticeable degree.
The RBA left its main interest rate at 2.5 percent and reiterated its outlook for a period of stable monetary policy:
On present indications, the most prudent course is likely to be a period of stability in interest rates.
In general, the statement was mildly optimistic:
Looking ahead, continued accommodative monetary policy should provide support to demand, and help growth to strengthen over time. Inflation is expected to be consistent with the 2â3 per cent target over the next two years.
The trade balance surplus fell by $526m to $731m in March 2014. It was an unpleasant surprise who have counted on a surplus of at least $1,100 million.
AUD/USD climbed from 0.9273 to 0.9361 and AUD/JPY surged from 94.70 to 95.07 as of 17:14 GMT today. EUR/AUD tumbled from 1.4959 to 1.4876.
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