Effective from tomorrow and somewhat expected…..
RBA comments
- Downside risks remain to global outlook
- Appropriate for policy to be a bit more accommodative
- Uncertainty rising over near term Chinese growth
- Commodity prices significantly lower than in the early part of the year
- Terms of trade likely to fall further but will remain historically high
- Sees peak of resource investment likely next year
- Australian growth running close to trend
- AUD/USD has remained higher than expected
- Export prices have declined
AUD/USD ‘s was off around 50 pips on the announcement, around 1.0320
