Australian Dollar Climbs As RBA Leaves Key Rate Unchanged
06 Agosto 2019 - 6:01AM
RTTF2
The Australian dollar firmed against its major counterparts in
the Asian session on Tuesday, erasing its early losses, after the
Reserve Bank of Australia kept its key interest rate unchanged
after trimming it for two straight months.
The board of the Reserve Bank of Australia, governed by Philip
Lowe, maintained the cash rate at a record low 1.00 percent, in
line with forecasts.
"The Board will continue to monitor developments in the labour
market closely and ease monetary policy further if needed to
support sustainable growth in the economy and the achievement of
the inflation target over time," the bank said in a statement.
Policymakers said it is reasonable to expect that an extended
period of low interest rates will be required in Australia to make
progress in reducing unemployment and achieve more assured progress
towards the inflation target.
Data from the Australian Bureau of Statistics showed that
Australia recorded a merchandise trade surplus of A$8.036 billion
in June. That beat expectations for a surplus of A$6.0 billion and
was up from the upwardly revised A$6.173 billion surplus in
May.
The currency weakened in early Asian trading, as Asian shares
followed Wall Street lower after the U.S. Treasury Department
designated China a currency manipulator, paving way for possible
additional sanctions.
Meanwhile, China halted purchases of U.S. farm goods as a weapon
in the ongoing trade war and also indicated it may slap tariffs on
U.S. farm goods purchased after August 3.
On Monday, the currency fell as the escalating U.S.-China trade
war triggered concerns about global economic slowdown. Further,
China's central bank let its yuan to fall below the politically
sensitive level of seven to the U.S. dollar to counter President
Donald Trump's latest tariff threat.
The aussie lost 1.2 percent against the yen, 0.6 percent against
the greenback, 1.5 percent against the euro and 0.5 percent against
the kiwi for the day.
The aussie remained near a 4-day high of 72.71 against the yen,
up by almost 2 percent from more than a 7-month low of 71.23 hit at
6:00 pm ET. The pair was valued at 71.58 at yesterday's close. Next
immediate resistance for the aussie is possibly seen around the
75.5 level.
Data from the Ministry of Communications and Internal Affairs
showed that Japan household spending rose 2.7 percent on year in
June, coming in at 276,882 yen. That beat expectations for an
increase of 1.2 percent following the 4.0 percent gain in May.
The aussie was up by 0.6 percent at 1.6534 against the euro,
following near a 10-year low of 1.6626 it touched at 8:00 pm ET. At
Monday's close, the pair was quoted at 1.6580. Further uptrend may
take the aussie to a resistance around the 1.63 region.
The Australian currency gained 0.6 percent against the
greenback, rising to 0.6795 after the RBA decision. The
aussie-greenback pair had ended Monday's deals at 0.6756.
Continuation of the aussie's uptrend may see it challenging
resistance around the 0.70 region.
After depreciating to more than a 7-month low of 1.0265 at 6:45
pm ET, the aussie bounced off 1.2 percent to 1.0390 against the
kiwi. The aussie was trading at 1.0345 per kiwi when it finished
deals on Monday. The aussie is seen facing resistance around the
1.05 level.
Data from Statistics New Zealand showed that New Zealand
unemployment rate came in at a seasonally adjusted 3.9 percent in
the second quarter of 2019. That was shy of expectations for 4.3
percent and down from 4.2 percent in the three months prior.
The aussie was 0.5 percent higher at 0.8963 versus the loonie,
gaining from over a 9-year low of 0.8915 recorded at 5:45 pm ET. At
yesterday's New York session close, the aussie-loonie pair was
worth 0.8921. The aussie is likely to find resistance around the
0.93 level.
In today's events, Federal Reserve Bank of Chicago President
Charles Evans is scheduled to speak at a media breakfast event
hosted by the central bank at 9:30 am ET.
Federal Reserve Bank of St. Louis President James Bullard will
give a speech about the economy and monetary policy at the National
Economists Club Signature Luncheon in Washington DC at 12:00 pm
ET.
Grafico Cross Euro vs AUD (FX:EURAUD)
Da Mar 2024 a Apr 2024
Grafico Cross Euro vs AUD (FX:EURAUD)
Da Apr 2023 a Apr 2024