The Australian Dollar is growing after the RBA meeting. Overview for 06.03.2018

AUDUSD is trading upwards; the Reserve Bank of Australia didn’t change its monetary policy.

On Tuesday morning, the Australian Dollar is strengthening a bit against the USD. The current quote for the instrument is 0.7778.

Another meeting of the Reserve Bank of Australia was over today. The results were quite expected: the key rate remained unchanged, at 1.50%. In fact, the rate has been the same for more than a year. Today’s decision was no surprise, because Phillip Lowe, the head of the Australian regulator, told the financial world earlier on several occasions that the time to change the RBA’s monetary policy hadn’t come yet and the rate value at the moment was completely in accordance with the current economic situation.

The regulator’s economic outlook also didn’t change. The RBA is still expecting the GDP to improve better than it did in 2017, the inflation to reach 2% (right now the CPI is lower), and the labor market to reach stability.

Possible risks also remained the same. The most essential of them is the low level of household spending, which, in its turn, directly depends on the salary growth rate. The RBA shouldn’t expect the country’s economy to rise quickly as long as these two issues don’t change.

However, no one in the regulator’s office is expecting any significant improvements in the nearest future. On the contrary, the RBA’s representatives say that trading terms may even get a bit worse despite rather neutral market conditions.

RoboForex Analytical Department