The Australian Dollar fell after rising earlier against a basket of currencies upon the Reserve Bank of Australia’s release of its monthly Rate Statement. The Bank also announced it would be leaving the Australian Cash Rate unchanged at 1.50%, in line with the market’s expectations. The Statement was widely seen as not containing any major surprises, although several analysts saw it a little more dovish than expected, with its mention of low inflation and good levels of business confidence suggesting the Bank is in no kind of hurry to raise rates at all.
As reported at 10:17 am (GMT) in London, the AUD/USD was trading at $0.7590, down 0.55% from its post-release peak of $0.7631. The AUD/JPY cross behaved in a very similar manner, but the AUD has notably continued to advance against its neighbor, the New Zealand Dollar, up by 0.25% on the day at $1.0864.
British Pound Hits New Lows as Brexit Fears Continue
The British Pound has continued its recent sell-off following concerns that the British Government will not be able to reach an agreed exit deal with the rest of the European Union. Government ministers have recently threatened publicly that they would be prepared to leave without any agreed deal after the notice period under Article 50 expires.
The benchmark GBP/USD currency pair traded at a two-week low price following the London open, reaching well below 1.2200. Against the Euro, a two-week low of €0.8666 was reached.
Although the U.S. Dollar Index is largely unchanged so far in today’s trading, it is looking strong and resilient, suggesting that a further rise is the most likely short-term outcome.