Australia Dollar Falls After RBA Remains Passive

The Australian dollar fell today after Reserve Bank of Australia remained passive, showing it has no plans for raising interest rates in the foreseeable future.

The RBA left its main interest rate unchanged at 1.5% as was widely expected. The policy statement did not provide anything particularly new. It mentioned, though, that the appreciation of the currency may hurt economic growth and inflation.

The construction PMI reported by Australian Industry Group demonstrated a drop from 54.7 in September to 53.2 in October.

AUD/USD dropped from 0.7690 to 0.7648 as of 12:32 GMT today. EUR/AUD rose from 1.5089 to 1.5115.

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