FXStreet (Delhi) – Lee Hardman, Currency Analyst at MUFG, notes that the Australian dollar has strengthened modestly in the Asian trading session supported by the RBA’s decision to leave monetary policy unchanged.
Key Quotes
“The accompanying monetary policy statement was left largely unchanged as well. The decision to leave monetary policy unchanged was judged as appropriate dropping the previous reference to at “this meeting” potentially signalling greater comfort to leave unchanged for longer.”
“However, the RBA still reiterated that there remains scope for a further easing of policy should that be appropriate to lend support to demand given inflation remains subdued. It was also notable that the RBA cited weakness in demand as a factor to explain weakness in commodity prices signalling that it may be set to downgrade its outlook for growth in its main trading partners. We continue to believe that ongoing weakness in the price of Australia’s key export commodity prices will bring an end to the Australian dollar’s recent resilience.”
(Market News Provided by FXstreet)