AUD Rallies as RBA Holds Off On Rate Cuts

Posted Tuesday, May 7, 2019 by
Arslan Butt • 1 min read

AUD/USD had a good day today after the RBA announced its decision to hold interest rates at 1.5%. Market analysts were expecting a rate cut, but the hawkish outlook of the central bank caused Australian dollar to rally up to 0.8% against the US dollar.

While several central banks around the world turned dovish since the beginning of this year, RBA’s decision to hold off on rate cuts was a refreshing change. However, the bank has cautioned that it could consider cutting rates in the future if employment doesn’t get better.

At the time of writing, AUD/USD is trading at around 0.7018, lower than today’s highs of 0.7048.

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