Australian Dollar Welcomes RBA Decision to Stay Pat

The Reserve Bank of Australia maintained its cash rate unchanged during the monetary policy meeting on Tuesday. The Australian dollar reacted positively to the news. Currently, the Aussie trades off the day’s highs but still above the opening level.
The RBA left its main interest rate at 1.5%. Such decision was widely anticipated by market participants, providing no surprises. The policy statement had few changes compared to the previous ones, remaining largely neutral, though a bit more optimistic. As for the currency, the central bank mentioned that “an appreciating exchange rate would complicate” Australian economy’s “transition following the mining investment boom.”
AUD/USD traded at 0.7595 as of 12:44 GMT today after opening at 0.7579 and rallying to 0.7632. EUR/AUD declined from 1.3955 to 1.3874 before trading at 1.3915.

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