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AUD/USD moves higher amid stable RBA decision

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.

AUDUSD September 6 2016 RBA current account

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.