The Australian Dollar is retreating after the RBA’s comments. Overview for 04.04.2017

The AUD/USD pair is trading to the downside on Tuesday after the Australian Central Bank’s rate decision and the comments that followed.

The Australian Dollar is retreating for the second consecutive trading session against the USD. The current quote for the instrument is 0.7561.

So, during its April meeting, the Reserve Bank of Australia decided to keep the main parameters of its monetary policy unchanged. The rate remained at 1.5%, as expected. However, the comments that followed surprised and upset investors.

Giving a speech later, the regulator emphasized that the high rate of the Aussie prevented the country’s economy from recovering as the employment market was still in trouble. The inflation perspectives are rather contradictive, but the forecast is mostly positive as the inflation is expected to grow slowly. In the RBA’s opinion, the current rate value is in accordance with the economic reality.

The regulator is paying attention to the real estate market and saying that there is some lack of balance in the sector: in some cases, the prices are growing too fast, in others – a slump in demand can be seen. Partly, new loan-granting restrictions are intended to “iron out the wrinkles”, but risks still exist.

Once the RBA is back to the expensive Aussie issue, then there won’t be any changes to the rate in months to come. At first, the market responded to this comment, and then – to the comments about difficulties in the real estate sector.

RoboForex Analytical Department