Aussie Dollar Rallies After RBA Announce a Hold on Interest Rates

The AUDUSD opens at 0.6893 (mid-rate) and the NZDUSD opens at 0.6387 (mid-rate) this morning.

The Australian dollar is the best performing of the G10 currencies after the RBA, as widely expected, kept interest rates on hold at yesterday’s monetary policy meeting.

A December rate cut is looking less likely after RBA Governor Phillip Lowe said the economy had reached a "gentle turning point" and although the bank will downgrade its 2019 growth forecast to 2.25% it believes the low level of interest rates, recent tax cuts and ongoing spending on infrastructure should support growth going forward.

The USD is pushing higher after Commerce Department reported the trade deficit narrowed to $52.5 billion in September from a revised $55.0 billion in August, while the Institute for Supply Management said its non-manufacturing index climbed to 54.7 in October up from 52.6 in September and ahead of the expected 53.2 result.

Future direction for the NZD will be determined by this morning’s Q3 employment report, with current expectations of 0.2% employment growth and a rise in the unemployment rate from 3.9% to 4.1%.

Global equity markets are broadly higher - Dow +0.10%, S&P 500 +0.08%, FTSE +0.25%, DAX +0.09%, CAC +0.39%, Nikkei +1.76%, Shanghai +0.54%

Gold prices are down 1.7%, trading at $1,483 an ounce. WTI Crude Oil prices are little changed trading at $57.23 a barrel.

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Australia Morning Update  |  New Zealand Morning Update