+357 25 105 641
  • Facebook
  • YouTube
Australian dollar awaits Fed minutes
Published on 05.04.2016 21:33

The Australian dollar is sharply lower today after today’s RBA interest rate decision and monetary statement where they left the door open for further rate cuts if needed.

At 6.19pm (GMT) the Aussie dollar was trading at US75.25c falling from around US76.10c before the announcement.

The RBA kept rates on hold today at 2 percent but the monetary statement reflected a worry over inflation and the soaring Aussie dollar which led many to believe that a rate cut was on the cards in the nearest future.

 “The clear implication is that a further gain in the value of the Australian dollar could cause the RBA to act on its bias to cut interest rates again.” noted Shane Oliver, head of investment strategy and chief economist at AMP Capital

Before the RBA’s interest rate decision, local data released to the market failed to impress investors with import and export figures failing to meet expectations and Australia’s trade deficit hit $3.4 billion, well above expectations for a number of $2.5 billion.

The Australian dollar is expected to remain subdued until tomorrow’s minutes meeting from the US Federal Reserve where the central banks tone is likely to choose the direction of the Aussie.

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Andrew Masters

Analyst

The power of leverage is the power of Forex.
×

Risk warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, your level of experience and preparation of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.

Important notice
By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Click "Cancel" to remain on this page.