RBA keeps rates unchanged

The Australian economy has recently slowed down due to several factors. A key factor affecting the health of the Australian economy is the slowdown in Chinese growth.

The US-China trade war has an impact on the Australian dollar

Australia is very dependent on the purchase by China of its goods and services. Trade between China and the United States has an impact on Chinese growth and in turn hits the Australian dollar. Not long ago, it seemed that we could end the trade war with reports suggesting that the negotiations had progressed well and that it was hoped that an agreement would be in place from here the end of the month.

Trump, however, changed position, saying the talks were not moving fast enough. He said on Twitter that he intended to more than double the current tariffs on the Chinese.

Australian Dollar vs British Pound

These fears had led to the weakening of the Australian dollar against the pound sterling last week, as rumors circulated that the Reserve Bank of Australia (RBA) could potentially lower interest rates.
Yesterday we saw the interest rate decision of the RBA and interest rates were kept at 1.5%. This strengthened the Australian dollar and saw the pound lose some of last week's gains.

In the run-up to the decision, GBP / AUD hit the 1.89 mark, which turned out to be a small window of opportunity for AUD buyers. There are contract options available to make sure you do not miss these opportunities. A limit order allows you to set a target exchange rate. If this exchange rate became available 24 hours a day, your currency would be automatically purchased. Please contact us if you are interested.

RBA Monetary Policy Statement

Following Tuesday's decision on interest rates, the Australian Central Bank (RBA) released its monetary policy statement. This statement provides a rationale for current monetary policy and can provide clues for future monetary policy. Investors seeking to earn money quickly observe these statements carefully, which can lead to market volatility. I would expect a dovish tone because of the current economic problems underneath.

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