Flash: AUD downside halted by RBA rate hold? - Danske Bank

FXStreet (Barcelona) - Anders Vestergård Fischer, Analyst at Danske Bank notes that the Reserve Bank of Australia (RBA) overnight kept its cash target rate unchanged at 2.50%.

Key Quotes

“In the statement issued the RBA was notably more neutral than previously: it signalled stable interest rates ahead (rather than cuts) and dropped saying that AUD is ‘uncomfortably high’.”

“This is a key shift in stance and will likely halt the AUD downside somewhat despite continued weakness in China.”