The Australian dollar was higher after the Reserve Bank of Australia left interest rates unchanged, although concerns over the outlook for growth in the euro zone weighed. AUD/USD hit 1.0253 during late Asian trade, the pair’s highest since February 28; the pair subsequently consolidated at 1.0235, advancing 0.39%. The pair was likely to find support at 1.0188, the session low and resistance at 1.0290, the high of February 28. In a widely expected decision, the RBA held its benchmark interest rate at a 50-year low of 3%, saying that the bank’s current monetary policy is appropriate. The announcement came after official data showed that retail sales in Australia rose 0.9% in January, more than the expected 0.4% increase, after a 0.4% decline the previous month. A separate report showed that Australia’s current account deficit narrowed to AUD14.7 billion in the fourth quarter, from a deficit of AUD15 billion in the previous quarter. Analysts had expected the current account deficit to widen to AUD15.4 billion in the last quarter. The Aussie was higher against the euro with EUR/AUD shedding 0.30%, to hit 1.2739.
EasyForexNews Research Team