No Movement on the Interest Rate Causes AUD Rally (Daniel Johnson)

AUD GBP Looking for Catalyst at Key Level

The Australian Interest Rate Decision came in on Tuesday  and has been eagerly anticipated by AUD buyers. Interest Rates were kept at 2% despite rumors of a possible drop.The Governor of the RBA Glenn Stevens also dropped any jawboning from his statement which coupled with the rate decision has caused the AUD to strengthen over Sterling. Jawboning is effectively talking a currency down in value, which is something Mr Stevens has a tendency for. The decision was made due to the available information suggesting the economy has continued to grow although slightly below long term averages.Tomorrow unemployment figures are released by the Australian Bureau of Statistics for July. They are predicted to come in similar to June at around 6%.But after Mr Steven’s speech suggesting stronger growth of employment we could well see a drop which will cause further AUD strength. I f you are an AUD buyer it may prove prudent to buy before this data release.

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