Australian Dollar Declines as RBA Holds Interest Rates

The Australian dollar fell today after Australia’s central bank kept its main interest rate unchanged and as commodities retreated, reducing appeal of currencies tied to growth.

The Reuters/Jefferies CRB Index of raw materials slipped 0.5 percent. The Reserve Bank of Australia kept its 4.75 percent and bank’s Governor Glenn Stevens said in his statement:

At today’s meeting, the Board judged that the current mildly restrictive stance of monetary policy remained appropriate. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.

AUD/USD fell from 1.0942 to 1.0857 as of 18:20 GMT today.

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