0.7054 holds
The Australian dollar is virtually unchanged on the day at 0.7088 after falling as low as 0.7059.
I noted yesterday that there is a positive seasonal backdrop for the Australian dollar and that 0.7054 provides a level to use to manage risk. That level held today in North American trade as the pair was caught in a downdraft on USD strength after the ISM non-manufacturing report.
Earlier, RBA Governor Lowe was slightly more positive in today's decision but the main message was unchanged, as were rates.
In the bigger backdrop. the Aussie held its ground yesterday and today despite some risk aversion and US dollar strength. That's a good start but it's going to need some help from the other side of the trade at some point.
The big event in the day ahead is GDP at 0030 GMT. The consensus is for 0.3% q/q growth, which equates to 2.6% y/y. Before that comes a speech from Lowe at 22:10 GMT.
