The Australian dollar rallied today against its most-traded rivals (with the exception of the very strong Japanese yen) following the release of monetary policy statement from the Reserve Bank of Australia.
The RBA left its main interest rate at 1.5%, exactly as market participants were expecting. RBA Governor Philip Lowe acknowledged the economic slowdown in the first quarter of this year but predicted the growth will resume in the future:
Looking forward, economic growth is still expected to increase gradually over the next couple of years to a little above 3 per cent.
The separate report showed that the current account deficit shrank from A$3.5 billion to A$3.1 billion in the March quarter of 2017. Forecasters predicted a much bigger decrease to A$0.2 billion.
AUD/USD rose from 0.7484 to 0.7514 as of 13:50 GMT, bouncing from the daily low of 0.7457. EUR/AUD dropped to 1.4997 after opening at 1.5028 and rising to the daily high of 1.5108.
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