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

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.