The Australian dollar attempted to hold its ground after the policy meeting of the Reserve Bank of Australia but failed and is now trading below the opening level. The worse-than-expected current account balance added to the downside momentum of the currency.
The RBA kept its main interest rate unchanged at 1.5% at today’s meeting. Such decision was widely expected by market participants. The statement did not provide many new insights, showing a largely positive outlook for the Australian economy, but suggesting that the central bank is going to keep interest rates at the current low levels for the time being:
The low level of interest rates is continuing to support the Australian economy.
Released separately, the current account showed a deficit of A$13.5 billion in the June quarter of 2018 — an increase from A$11.7 billion in the March quarter. Specialists were anticipating a decrease to A$11.1 billion.
AUD/USD dropped from 0.7210 to 0.7170 as of 9:58 GMT today, and its daily low of 0.7157 was the lowest since May 2016. EUR/AUD edged up from 1.6097 to 1.6115, bouncing from the daily low of 1.6039. AUD/JPY was down from 80.09 to 79.89, retreating from the daily maximum of 80.44.
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