AUD/USD is trading modestly lower Friday after the Reserve Bank of Australia disappointed traders trading on the short side by not expressly stating an intention to ease policy again, although a sharply lowered inflation forecast meant that there was still plenty of scope for stimulus. The rate advanced from around $1.0250 to $1.0276 amid some short covering after the central bank released its 70 page economic outlook. Prices reached $1.0280 before easing back to now trade at $1.0256, down 8 pips on the session, as traders digested the RBA’s Statement of Monetary Policy. The pair remains nearly 2% lower on the week after the 50bps cash rate cut earlier in the week. The Kiwi has also traded lower across the board, now seen clinging to $0.8000 after sliding to a low of around $0.7988 overnight, its lowest level posted since Jan 17. Trading remains on the thin side with Japan closed for a national holiday.
EasyForexNews Research Team