Reserve Bank of Australia kept its 2% interest rate unchanged, in line with expectations.
Statement by Glenn Stevens, Governor: Monetary Policy Decision
Key commodity prices are much lower than a year ago, in part reflecting increased supply, including from Australia. Australia’s terms of trade are falling.The Australian dollar is adjusting to the significant declines in key commodity prices.
RBA: Australian economic growth below the long term average.Spare capacity will remain for some time.Monetary policy needs to be adjusted accordingly.Australia’s economy is still moderate recovery.Inflation is expected next 1–2 years to achieve its objectives.
Resistance seems at 0.7160 0.7170. Bullish momentum backs above 0.7200
support finds at 0.7110, 0.7080 and 0.7060