RBA holds rate, downgrades forecasts; Aussie slips briefly
The Australian dollar edged lower after the Reserve Bank of Australia kept its cash rate unchanged and marked down growth and inflation projections, according to Rabobank.
AUDUSD
The Reserve Bank of Australia held its key interest rate unchanged at the latest meeting. At the same time, it downgraded its outlook for economic growth and inflation.
Markets initially took the move as dovish, pushing the Australian dollar lower. Rabobank’s Senior Macro Strategist Bas van Geffen noted that the RBA kept the door open, implying that further tightening remains on the table.
The Aussie’s dip was modest and short-lived as investors digested the mixed signals.
Source: FXStreet Forex News