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Australian Dollar Leaps As RBA Leaves Rates On Hold, Eyes Labor Market
The Australian Dollar leaped as the Reserve Bank of Australia kept its key Official Cash Rate at its record low of 1.50%, thwarting expectations of a further cut. Rate-futures markets had been quite aggressively pricing in a reduction thanks to enduringly feeble inflation data. The RBA acknowledged this but also strength in the labor market which, it feels, may yet take up the remaining economic slack and boost pricing power. Given that markets had put the chance of a cut this month at close to 50% it’s hardly surprising that AUD/USD should have gained as it did. Rate futures markets are still pricing it at least ... (full story)