Australian Dollar Strengthens As RBA Cuts Rate Amid Coronavirus Worries
03 Marzo 2020 - 2:15AM
RTTF2
The Australian dollar appreciated against its major counterparts
in the Asian session on Tuesday, after the Reserve Bank of
Australia lowered its key interest rate to a fresh low to support
the economy in response to the coronavirus outbreak.
The board of the Reserve Bank of Australia, governed by Philip
Lowe, decided to cut the cash rate by a quarter-point to a record
0.50 percent.
Policymakers observed that the global outbreak of the
coronavirus is expected to delay progress in Australia towards full
employment and the inflation target.
"The Board therefore judged that it was appropriate to ease
monetary policy further to provide additional support to employment
and economic activity," the bank said.
The board reiterated that it is prepared to ease monetary policy
further to support the Australian economy.
The aussie advanced to 0.6566 against the greenback, from a low
of 0.6510 seen at 8:45 pm ET. The aussie is seen finding resistance
around the 0.70 mark.
The aussie was up against the euro at 1.6965. The pair had
finished Monday's deals at 1.7021. Next key resistance for the
aussie is likely seen around the 1.60 level.
The aussie bounced off to 70.91 against the yen, after falling
to 70.30 at 10:30 pm ET. The aussie is likely to face resistance
around the 72.5 region, if it gains again.
Data from the Cabinet Office showed that Japan's consumer
confidence fell in February.
On a seasonally adjusted basis, the consumer confidence index
decreased to 38.4 in February from 39.1 in January and December.
Economists had expected a score of 38.3.
The aussie was trading higher at 0.8752 against the loonie and
1.0462 against the kiwi, compared to 4-day lows of 0.8684 and
1.0409, respectively hit in early deals. Immediate resistance for
the aussie is possibly seen around 0.94 against the loonie and 1.06
against the kiwi.
Looking ahead, at 1:45 am ET, Swiss GDP data for the fourth
quarter is due out.
U.K. construction PMI for February and Eurozone flash CPI for
the same month, PPI and jobless rate for January are scheduled for
release in the European session.
At 2:50 pm ET, Federal Reserve Bank of Cleveland President
Loretta Mester will deliver a speech about the economic outlook and
monetary policy at the Society of Professional Economists Annual
Dinner, in London.
Grafico Cross AUD vs US Dollar (FX:AUDUSD)
Da Mar 2024 a Apr 2024
Grafico Cross AUD vs US Dollar (FX:AUDUSD)
Da Apr 2023 a Apr 2024