The Reserve Bank of Australia left its key policy rate unchanged for the fourth month in a row at the monetary policy meeting held Tuesday, following persistently low rates of inflation, which is likely to lead to further neutral policy meets through the first half of 2017.
As widely expected, the RBA left the cash rate unchanged at 1.5 percent. There were a number of changes to the statement, the main ones being around the global inflation outlook, the temporary nature of the weakness in domestic activity, and the acknowledgment of overall strength in housing.
The RBA implicitly acknowledged the weakness in Q3 activity, although it implied that the weakness will be temporary, noting that 'some slowing in the year-ended growth rate is likely before it picks up again'. This is consistent with our view that Q3 GDP will be weak (-0.1 percent q/q), but that the weakness is likely to be short-lived.
"We continue to think that rates are on hold, but with inflation likely to remain low for some time, we expect the Bank retains an easing bias. The likelihood of the Bank acting on that bias seems relatively low," said Felicity Emmett of ANZ Research in their latest research report.
Tomorrow’s wage data in the GDP report will be important, as will labor and housing market data over the next few months.
Meanwhile, the AUD/USD is trading bearish at 0.74, down 0.25 percent, while at 5:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at -20.89 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex


US Stock Futures Rise as Oil Prices Fall Ahead of Q3 Earnings
Gold Prices Rebound as Dollar Weakens Ahead of US Inflation Data
Philippines Current Account Deficit Seen at $19.1 Billion in 2026
IMF, World Bank Meetings Face Global Economic Risks Amid Iran War
Trump Demands Powell Resign Over Fed Renovation Cost Overruns
ECB May Stop Rate Hikes After December, Capital Economics Says
European Stocks Rise as Oil Prices Fall Ahead of US CPI
Gold Prices Rise Above $4,200 as Russia-Ukraine Energy Truce Eases Oil Concerns
Fed’s Williams Signals One More Rate Hike Before Year-End
Deutsche Bank CEO Urges Faster German Economic Reforms
Best Gold Stocks to Buy Now: AABB, GOLD, GDX
RBA Set for September Rate Hike as Inflation Stays High




