Australian Dollar Aiming at New Highs. Overview for 01.09.2020

The Australian dollar in pair with the US dollar renewed new local highs. The current quotation is 0.7400.

The Reserve Bank of Australia finished a planned meeting today and decided to leave the interest rate without change at 0.25% per annum. By the way, no changes had been forecast here – the current structure of Australian credit and monetary policy looks optimal.

The interest rate has remained at 0.25% since March 2020.

In the comments, the RBA highlighted the importance of the monetary policy remaining as soft as possible until the labor market stabilizes and desired progress is reached in inflation issues. This will take several months more, the regulator admits.

As for the state of the economy, the RBA says it is not as grave as it could be, and economy is restoring over the largest part of the continent. However, the structure of the restoration is patchy, and so it will remain. The process may pause for a time and even pull back.

The AUD is growing rapidly while the USD is falling, and so it will be for a while.