The Reserve Bank of Australia left the interest rate unchanged at 1.50% as widely expected. It was the last decision presided by the outgoing governor Glenn Stevens. Phillip Lowe will take over the reins from October onwards. Stevens did not rock the boat: the statement remained fairly identical to the previous one. It did include the usual complaint about the exchange rate, but also expressed some satisfaction about the general direction of the economy.
AUD/USD is trading at 0.7625, over 40 pips during the day. The pair already advanced before the announcement, perhaps expecting an upbeat sentiment, or perhaps due to other positive data.
Among the comments, the RBA sees weaker global growth and moderating growth in China in particular. Inflation is expected to remain low while the labor market is mixed but continues growing. The Bank does not seem worried about home prices and sees a large supply of apartments coming on stream in the next couple of years.
Australia’s current account showed a narrower than expected at 15.5 billion instead of 20.2 billion expected. In addition, the previous figure was revised to the upside.
The Australian dollar faces another significant release: GDP growth for Q2. AUD/USD: Trading the Australian GDP
AUD/USD is capped at 0.7660 and 0.7740. To the downside, support awaits at 0.7580 and 0.75.
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