Aussie Weakens in Currency Trading, Thanks to Neutral Stance

The Reserve Bank of Australia has kept monetary policy steady, and that is prompting some to believe that the recent run for the Aussie is drawing to a close. Indeed, the Australian dollar is lower in forex trading today.

GFT's Boris Schlossberg reports in FX360 on the latest decision by the Reserve Bank of Australia:

Having reached what it considers to be an equilibrium level in interest rates, the RBA is likely to hold rates steady for the foreseeable future unless it sees a marked pick up in final demand as the end of the year approaches. Tomorrow’s Australian employment data will provide the policy makers in Sydney with yet more information regarding the strength of the Australian economy, but is unlikely to change the RBA’s neutral stance for now even if it beats expectations.

With the Australian economy slowing down, and with risk appetite in general fading around the world, it is little surprise that the Aussie is down in currency trading against the U.S. dollar.