Aussie holds steady after RBA update

The Australian dollar has held its ground following an update from the Reserve Bank of Australia (RBA).

The Aussie is broadly unchanged after the RBA upped its annual growth forecast from 2.75% to 3%. It would appear that the Australian central bank is content to keep its policy unchanged for the time being.

The decline in growth in the mining sector has been offset by the increased investment in domestic industry. As Stan Shamu stated, China revealed weaker-than-expected consumer and producer price index reports. As the Australian economy becomes less reliant on China as a mineral export destination, China’s impact on the Australian dollar will continue declining.

During the week Australian unemployment remained unchanged at 5.8%, which was better than expected. The Federal Reserve is holding its dovish lines which could keep us above the $0.93 level, but we would need strong economic data from Australia, like the unemployment figure, to retake the $0.94 mark. 

Spot FX AUD/USD chart

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