Open trading account 
The Reserve Bank of Australia kept the rates unchanged at 2.5% earlier this morning. In the accompanying statement the bank officials duly noted that the period of prolonged low interest rates is not over yet, albeit further rate cuts are not coming soon either.
The market seemed rather perplexed by these emanations – AUD spiked for a few minutes only to go down for the rest of the day. Indeed, the market participants still remember that according to “fundamentals” the “fair value” for AUD is 0.85 USD. As the aussie inexorably crawled down to the current level of 0.85 it seemed that the rock bottom has been reached. Not so, according to the RBA`s officials – the current level of commodity prices does not fundamentally justify elevated exchange rate.
It looks that RBA has much more ambitious goals on the exchange rate of AUD and further actions leading to additional weakness might follow.
The market seemed rather perplexed by these emanations – AUD spiked for a few minutes only to go down for the rest of the day. Indeed, the market participants still remember that according to “fundamentals” the “fair value” for AUD is 0.85 USD. As the aussie inexorably crawled down to the current level of 0.85 it seemed that the rock bottom has been reached. Not so, according to the RBA`s officials – the current level of commodity prices does not fundamentally justify elevated exchange rate.
It looks that RBA has much more ambitious goals on the exchange rate of AUD and further actions leading to additional weakness might follow.
