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AUD deriving little support from RBA meeting - BTMU

FXStreet (Łódź) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ suggests that the Aussie dollar's overnight strength can be attributed to the USD reversal and not so much to the RBA monetary policy announcement.

Key Quotes

"The Australian dollar has strengthened modestly overnight benefiting from the broad-based US dollar reversal while deriving little support from the latest RBA monetary policy meeting."

"The RBA maintained an unchanged monetary policy stance reiterating that 'the most prudent course is likely to be a period of stability in interest rates'."

"The RBA acknowledged that the Australian dollar 'has declined recently, in large part reflecting the strengthening of the US dollar, but remains high by historical standards, particularly given the further declines in key commodity prices in recent months'."

"The RBA also continues to judge that the Australian dollar is 'offering less assistance than would normally be expected in achieving balanced growth in the economy'."

"Overall the RBA has clearly signalled that it continues to believe that the Australian dollar is overvalued and would like to see it fall further still bringing it more into line with the ongoing deterioration in Australia’s terms of trade."

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