Weakness in the Australian dollar continues, and the currency is down against most major peers including the US dollar and the euro. Today's RBA interest rate decision was yet another non-event. The bank kept interest rates at 1.5% while issuing a fairly neutral statement. Recent economic data from Australia has been disappointing, and suggest that GDP growth may be slowing in rate-of-change terms. Our medium-term outlook on the Australian dollar remains bearish, although the currency is looking oversold in the short-term and is due for a relief rally.
AUD/USD is currently trading just below 0.7660. Looking at EUR/AUD, the pair is currently just below 1.510. The GBP/AUD exchange rate is currently above 1.7170.
This is another pretty light week for the Australian dollar. On Monday, TD Securities year-over-year inflation came in at 2.6% (vs. 2.5% previously). The RBA maintained its cash target rate at 1.5%. On Wednesday, we’ll get the AiG Performance of the Construction Index. On Thursday, we’ll see Home Loans figures. Finally on Friday, we’ll get a statement from the RBA on monetary policy. Last week, retail sales figures widely missed expectations.