The RBA held rates at 3.50% and was less-dovish than expected, indicating that the October decision will be a tough call.
The RBA will be watching the Fed and ECB over the next month but mainly, their eyes will be focused on China.
In Stevens’ statement, the view of China was downgraded:
Growth in China remained reasonably robust in the first half of this year, albeit well below the exceptional pace seen in recent years. Some recent indicators have been weaker, which has added to uncertainty about near-term growth.
There has been no PBOC move after the soft China PMIs on the weekend and the window for action has probably now closed.
AUD/USD bids seen ahead of a 1.0200 barrier.
Another worrying sign for AUD is the atrocious weekly chart of Chinese stocks, which looks headed to the 2008 low.
