Since Australia's last meeting, the Australian Dollar rose from USD 0.715 to USD 0.725, in spite of the drop in iron ore price to USD 43 from USD 49, along with a 5% decline in Westpac's commodity price index.
With one month data to go by, the RBA decided to retain its statement around the AUD as "the Australian dollar is adjusting to the significant declines in commodity prices".
"The resumption of the strong US dollar uptrend should weigh on AUD/USD during the next few months. The next major downside target is 0.6900, beyond that 0.6700", estimates Westpac.
