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Aussie falls as RBA holds steady

Australia central bank

The Aussie fell after Australia’s central bank held steady as expected in its latest interest rate decision on Tuesday as investors detected tones of a more neutral bias and with investors cautious ahead of a meeting this week between U.S. President Donald Trump and Chinese President Xi Jinping in Florida expected to be contentious on trade.

AUD/USD traded down 0.34% to 0.7580, while USD/JPY changed hands at 110.43, down 0.42%. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.04% to 100.32.

“The outlook continues to be supported by the low level of interest rates,” RBA Governor Philip Lowe said in a statement. “Lenders have recently announced increases in mortgage rates, particularly those paid by investors. Financial institutions remain in a good position to lend. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment.”

Paul

The author Paul