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6 Feb 2015
AUD/USD rallies post RBA statement
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7833 the time of writing with a high of 0.7862 and a low of 0.7790 in Asia.
AUD/USD rallied from below the 0.78 handle and market a quick 30 pip spike to the upside on the release and continues to trade bid towards the mid point of the handle currently. The RBA's Statement on Monetary Policy is the highlight in Asia ahead of the Nonfarm Payrolls showdown in the US session later on and markets were prepared. The statement was going to be justifying the recent surprise rate cut given the lack of forward guidance at the meeting, so markets were expecting a dovish outlook from the Central Bank with prospects of further rate cuts down the line for 2015.
However, the main take away has been the beat of the same drum and jaw boning of the currency, stating that the Australian dollar is above most estimates of fair value, providing less aid to the economy than it could. The growth forecast in 2015 was reduced by 0.25ppt with similar cut to underlying inflation out to 2016 y/y gdp seen at 2.25-3.25 pct end 2015, 3-4 pct end 2016, 3-4.5 pct by june 2017 with underlying inflation seen at 2.25 pct mid 2015, 2-3 pct end 2015 out to June 2017.
AUD/USD rallied from below the 0.78 handle and market a quick 30 pip spike to the upside on the release and continues to trade bid towards the mid point of the handle currently. The RBA's Statement on Monetary Policy is the highlight in Asia ahead of the Nonfarm Payrolls showdown in the US session later on and markets were prepared. The statement was going to be justifying the recent surprise rate cut given the lack of forward guidance at the meeting, so markets were expecting a dovish outlook from the Central Bank with prospects of further rate cuts down the line for 2015.
However, the main take away has been the beat of the same drum and jaw boning of the currency, stating that the Australian dollar is above most estimates of fair value, providing less aid to the economy than it could. The growth forecast in 2015 was reduced by 0.25ppt with similar cut to underlying inflation out to 2016 y/y gdp seen at 2.25-3.25 pct end 2015, 3-4 pct end 2016, 3-4.5 pct by june 2017 with underlying inflation seen at 2.25 pct mid 2015, 2-3 pct end 2015 out to June 2017.