RBA holds its horses as the Australian dollar advances

horse racing

In short

  1. The Australian dollar is up against the Euro, Yen and NZ dollar
  2. The RBA leaves interest rates on hold
  3. Australian trade balance data including imports and exports due out later in the week

AUD to USD exchange rates

In the last week0.68500.6929
In the last month0.67140.6929

The Australian dollar moved higher against the Euro, Yen and NZ dollar overnight, adding around 1%. Meanwhile, the AUD/USD rate traded either site of 69 cents despite some gains yesterday.

Yesterday, the Reserve Bank of Australia met just before the Melbourne Cup. With little chance of an interest rate cut, the focus shifted to the statement following the announcement. With few changes on their stance or opinion, the Australian dollar enjoyed a brief rally before fading overnight.

The chances of any more interest rate cuts in 2019 have fallen in the past month which has been one of the reasons the Australian dollar has found some support.

For the rest of the week, markets will focus on trade data out of Australia and China and any developments in the ongoing US China trade war.

Up Next

With Australian retail sales figures and the RBA meeting done and dusted all that remains are the trade data later in the week.
Overseas, the central bank in the UK is also meeting but no change is expected. Closer to home, New Zealand will release its employment data while Chinese trade data will be closely watched and could have an impact on the Australian dollar.

AustraliaMondayRetail Sales figures
AustraliaTuesdayRBA meeting
New ZealandWednesdayLabour Force data
United KingdomThursdayBank of England meeting
ChinaFridayTrade balance figures including imports and exports