Forex Marketz Daily Forex News – Fully Markets Update
Just in. The Reserve Bank of Australia (RBA) has decided to keep the official cash rate at its record low of 1.50 percent in July, as expected. The central bank appears to be in no rush to move away from the record low OCR as officials warn ‘wage growth remains low. However, this is likely to continue for a well into 2018.
Also, Governor Philip Lowe and his economic monetary policy advisors at the RBA, continued to note “growth in housing debt has outpaced the slow growth in household incomes” as Australian households and businesses continue to adjust to the economic transition away from a resources based economy.
The RBA may preserve its current stance of wait and see throughout 2017 and well into 2018 as “indicators of the labor market remain mixed.”
The RBA takes the Steam out of the Australian Dollar
As expected, the RBA monetary policy decision and accompanying policy statement took some of the wind out of the Australian dollar’s (AUD/USD) sails. The Australian dollar had risen on the back of upbeat Chinese Caixin PMI data three hours before the Australian central bank announced their policy decision.
After the policy announcement, the Australian dollar lost ground. Against its US dollar cousin, it fell below the 0.7650 region to close the day at 0.7605. The sentiment linked currency will also be following ongoing drama and upheaval out of the US White House today.
Anthony Scaramucci was fired by President Donald Trump. He lasted a mere 10 days after becoming the White House communications director. The dismissal, reportedly to give new Chief of Staff John Kelly a clean slate, came several days after Scaramucci’s profanity laden call to a New Yorker reporter.
