Central Banks

AUD/USD lower after RBA left its cash rate unchanged and changed wording on future moves

By adminPosted on
Time to Read:-words

The Reserve Bank of Australia decision post is here:

In it I noted:

  • The RBA has dropped the wording that a further hike “cannot be ruled out”.

Now this

  • “The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe remains uncertain and the Board is not ruling anything in or out”.Which tilts a little less hawkish. And indeed by not ruling ANYTHING in or out, I guess they may even cut? Currently expectations for the first cut centre on September.

AUD/USD seems to think so, lower after the statement:

This article was written by Eamonn Sheridan at www.forexlive.com. Source