AUDUSD has been retreating for the second consecutive trading session despite neutral results of the RBA meeting and sound statistics.
On Tuesday morning, the Australian Dollar is retreating against the USD. The current quote for the instrument is 0.7085.
The key highlight of today’s morning was the RBA meeting and its rate decision. The rate remained unchanged at 1.5%, the lowest value that has been intact for 29 meetings in a row. In the comments that followed, the regulator said that global risks were rising (mostly it’s about global trading). The outlook for the country’s inflation was weak.
On the other hand, the labor market in Australia is expected to recover; there are signs of salary growth, which is very positive for the economy.
The Reserve Bank of Australia says that the Aussie has been trading inside a narrow range recently. In the past, the regulator mentioned on several occasions that the national currency was too expensive and prevented the country’s economy from growing.
In the morning, Australia reported on the Building Approvals in February. The indicator expanded by 19.1% m/m after adding just 1.5% m/m the month before and against the expected reading of -1.7% m/m. However, despite neutral results of the RBA meeting (because they were no surprise) and sound statistics, the Aussie went down against the USD.
There were a lot of numbers early in the week. On Monday, Australia reported on the AIG Manufacturing Index in March, which was unimpressive: 51.0 points against 54.0 points in February. The manufacturing in Australia is slowing down, the same way as in other neighboring countries, because it getting more and more difficult to export manufactured goods. However, there was one report yesterday that helped the Aussie, the Caixin Manufacturing PMI from China in April. The indicator increased up to 50.8 points, which is much better than expected (50.1 points) and, what is more, above the psychologically-crucial level of 50 points.
Orgin: RoboForex
