AUD/USD: downside back into play?

By FXStreet FXStreet (Guatemala) – AUD/USD lost its edge over night after the RBA statement informed markets and confirmed that the Central Bank was leaving the door wide open for further potential easing, despite the board judging that there “were reasonable prospects for continued growth.”

AUD: RBA signals dovish shift – Goldman Sachs

The RBA left rates on hold at 2.00% but developments abroad are keeping the board from overly optimistic and they remain vigilant. The statement from the RBA indicated that the low level of inflation “may provide scope for easier policy, should that be appropriate to lend support to demand”. We will now wait to see whether the Australian economy is able to weather the turmoil abroad, keeping an eye on iron ore, oil and commodity price sin general, the jobs sector, the value of the Aussie and of course inflation.

The Aussie is a two pronged variable. On one hand, should conditions were to worsen abroad, this would weigh on the Aussie, but at the same time negatively impact the Australian economy and possibly force the hand of the RBA, while at the same time, the RBA needs to balance the performance of the Aussie vs the prices …read more

Source:: FX Street