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COZfx: RBA keeps its interest rate unchanged at 2.5%

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COZfx: RBA keeps its interest rate unchanged at 2.5%

Postby dwang » Wed Mar 05, 2014 1:46 am

COZforex: For the 24 past trading session, AUD strengthened 0.22% against the USD to close at 0.8925.

In commodities, LME Copper prices dropped 0.9% or $65.0/MT to $7032.5/MT. Meanwhile, Aluminium prices declined 2.9% or $49.5/MT to $1674.5 /MT.

The Reserve Bank of Australia kept its interest rate unchanged at 2.5%. However, the gains were capped after the RBA Governor, Glenn Stevens stated that the Aussie “remains high by historical standards,” adding that it should keep declining in order to achieve balanced growth in the economy. Furthermore, he reiterated his earlier stance for the nation to witness a period of stability in interest rates.

In economic news, building permits in the Australian economy surged 34.6% in January, more than market expectations for a 24.0% rise and compared to a revised 22.5% increase recorded in the preceding month. Separately, Australia’s current account deficit narrowed to A$10.1 billion in the fourth quarter, from a revised deficit of A$12.5 billion registered in the preceding quarter.

In technical analysis, COZforex foreign currency senior currency strategist, Paul Chew said, AUD/USD is predicted to find support at 0.8898, and a drop through could take it to the next support line of 0.8866. Meanwhile, the pair is predicted to find its first resistance at 0.8966, and a rise through could take it to the next resistance line of 0.9002.

Market participants keenly await a report from the AiG on the performance of service index in Australia.

(COZ forex UK)
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