The RBA have insisted on cutting Interest rates further to weaken the Aussie Dollar in order to boost the economy. Dollar buyers will be pleased with this news.
The Reserve Bank of Australia (RBA) have indicated recently their intentions to weaken the value of AUD. This is an attempt to stimulate growth.
China is Australia’s main trading partner and figures on Saturday show China’s economic growth continue to decline. There was a drop in both Industrial Production and Retail Sales.
This news does not bode well for Aussie sellers, the RBA have already cut interest rates 1.75% and have mentioned there could be more to follow. If you are an AUD seller I would be looking to get my trade done sooner rather than later.
Overnight was the RBA Meetings Minutes. Lower than expected inflation data was a key topic and this could also push the RBA’s hand.
There is little data of consequence release this week. Employment figures on Thursday at 01.30. However I would not expect any movement significant enough to cause any big swing in AUD value. There is an outside chance of a rate cut on 7th June but I think it may just be a tad too soon for further changes in monetary policy