The Australian Dollar rose thanks to support from the RBA. Overview for 04.06.2019

AUDUSD is keeping its positive momentum supported by the regulator’s rate decision.

The Australian Dollar is rising against the USD on Tuesday morning. The current quote for the instrument is 0.6978.

This morning’s highlight was the rate cut by the Reserve Bank of Australia, from 1.50% to 1.25%. However, the decision was anticipated, because the key macroeconomic indicators showed that the country’s economy was slowing down. The previous rate value was the lowest for the RBA, which decided to cut it for the first time in three years. 

In the comments that followed, the regulator said that the rate cut would support the labor market in the first place and might have positive influence on the inflation. RBA was ready to continue cutting the rate and said that it would depend on market and economic conditions. The Aussie responded to this news by rising against the USD. Possibly, the RA may cut the rate one more time in September. 

Also, Australia reported on the Retail Sales for April, which lost 0.1% m/m after adding 0.3% m/m in March. However, investors didn’t pay attention to this reading, because the economic situation has changed and it will be interesting to see the June data, which will take into account the rate cut.