AUD/USD has retreated to 0.9395 from 0.9435, which was the highest since Sept 22.
The gains came after the RBA decision. Here is a redline of two of the key changes in the RBA statement:
1) The Australian dollar has depreciated by around 15 per cent since early April, although it remains at a high levelrose recently, but is still about 10 per cent below its level in April. It is possible that the exchange rate will depreciate further over time, which would help to foster a.A lower level of the currency than seen at present would assist in rebalancing of growth in the economy.
There is also a slight uptick on the assessment of the economy:
2) The unemployment rate has edged higher. There has been an improvement in indicators of household and business sentiment recently, though it is too soon to judge how persistent this will be.
The RBA was already seen on the sidelines for awhile. Are those changes enough to reassess what they will do? I don’t think so. The bigger news is the disappointing official PMI at 51.1 compared to 51.6 expected. The private survey a day earlier was also soft.
AUDUSD intraday 10 mins
Look for some minor support at 0.9375. There are also bids at 0.9350/55. Offers are at the high of the day (0.9435) and 0.9450.
