Overnight the RBA released its latest interest rate decision and accompanying statement. It kept rates on hold with governor Stevens reiterating that the bank’s preferred policy remains ”a period of stability in interest rates”. The central bank also noted the high value of Australian dollar, particularly given recent falls in commodity prices suggesting the recent volatility in GBP/AUD is set to continue.
As a result the AUD has rallied nearly 1 cent against the pound and Euro and pushed back to the 1.0780 territory against the US dollar. Tomorrows GDP figures from Australia will be the next focus.
Looking at the pound and Thursday’s Bank of England meeting could impact sterling, however with expectations for the base rate to remain on hold at 0.5% it may well be a bit of a non-event. Also Thursday will be trade balance figures in Australia.
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