The Australian dollar rallied today despite the passive stance of the nation’s central bank and adverse domestic macroeconomic data. The possible reasons for the rally were the positive report from China, Australia’s biggest trading partner, and the improving market sentiment.
The Reserve Bank of Australia kept its main interest rate unchanged at 1.5% at today’s meeting. Such decision was widely expected, and analysts believe that the RBA will keep interest rates at the current low level in the foreseeable future.
Australia’ seasonally adjusted current account deficit increased from A$4.8 billion to A$9.6 billion in the June quarter of 2017. The Australian Industry Group Australian Performance of Services Index fell from 56.4 to 53.0 in August.
Meanwhile, the seasonally adjusted Caixin China General Services Business Activity Index rose from 51.5 in July to 52.7 last month.
AUD/USD gained as much as 1.1% from 0.7941 to 0.8025 as of 15:07 GMT today. AUD/JPY rose from 87.10 to 87.40. EUR/AUD declined from 1.4965 to 1.4868.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.