Reserve Bank of Australia Rate Decision, $AUDUSD

Updated: Dec 23, 2019

As widely expected RBA left its cash rate unchanged to 1.50% in its Board meeting earlier today. There were various factors considered in the review, most significant were:

1) Chinese and US economic growth and trade relations with Australia.

2) Australia being a commodity nation, investments in mining industry form a major driver.

3) GDP came lower than expected in earlier quarter but is expected to even out in December for waning mining investments.

4) Economic growth forecast for 2017 remains at 3%.

5) Inflation remains around 1.50% and is expected to pick up in 2017 in due course.

6) Real estate scene is mixed at different locations within, some rising while other declining.

The economic indicators support the current interest rates and continue to give a boost to further rise in businesses and economy in general.

The Aussie Dollar takes further losses versus the US Dollar on dovish RBA outlook. Here's the daily chart for $AUDUSD and some immediate resistance and support levels to watch. Indicators (MACD and RSI) suggest further decline and consolidation for the currency pair.