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AUDUSD: Policy statement largely unchanged by RBA - MUFG

FXStreet (Delhi) – Lee Hardman, Currency Analyst at MUFG, suggests that the Australian dollar has been supported in today’s session from the RBA’s monetary policy meeting overnight which revealed an unchanged policy stance dampening expectations for further easing.

Key Quotes

“The RBA policy statement was largely unchanged from their last meeting in early September providing no clear signal that downside risks to growth and/or inflation has increased over the last month. The RBA reiterated that there had been some further softening in conditions in China and east Asia of late but stronger US growth.”

“The RBA continued to describe the Australian economy as expanding moderately and reiterated that inflation is forecast to remain consistent with their target over the next one or two years. As a result the RBA concluded again that the current stance of policy will most effectively foster sustainable growth and inflation consistent with their target.”

“The Australian dollar was again described as adjusting to the significant decline in key commodity prices. The weakening Australian dollar is helping to ease overall monetary conditions dampening the need for further rate cuts. We continue to expect the Australian dollar to weaken further alongside the economic slowdown in Asian and emerging economies.”

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