RBA left rates on hold but the A$ has taken a real tumble 4 July
The decision was expected but lack of any real upbeat assessment and a change in tone gave AUD a real kicking.
Seems like they're in no rush to hike rates.
Currently 0.7630 after 0.7622 lows from 0.7680
Large option expiries at 0.7700 for 14.00GMT today that I posted/warned of yesterday also a contributory factor imho with the defenders seizing the opportunity to create some real clearance amidst the mayhem.
As Eamonn said in his RBA post there was plenty of concern on:
- employment growth (indicators remain mixed)
- on slow wage growth (remains low, likely to stay that way for a while)
- the slow wage growth holding back demand (restraining growth in household consumption)
- housing debt 'outpacing' incomes
Some demand at 0.7620 with larger at 0.7600 and resistance/sell interest now expected between 0.7650-60
I hope you AUD traders got yourself a few pips from the tumble.
