The pair started at $0.8938 and stayed between that and a $0.8922 low in early trades with the market focused on the RBA’s rate decision. Aussie-dollar witnessed a modest rise to $0.8955 a few minutes after the release of building approvals and Q4 current account data. There was little follow-through as the market continued to wait for the RBA and the pair then consolidated the morning’s moves just above $0.8930. In the immediate aftermath of the RBA’s statement, aussie-dollar jumped to $0.8969 high as the market hailed the RBA’s decision to keep the cash rate on hold. However, a closer look at the accompanying statement revealed the RBA’s assessment of a historicallyhigh aussie and that prompted an almost immediate reversal in the spot FX market. Aussie-dollar quickly deflated to a low of $0.8910 before bids at $0.8905 kicked in. Aussie-dollar was last at $0.8929, with support eyed at $0.8870 ahead of the $0.8662 2104 low, traded on Jan. 24.
