As widely expected, with following comments from the RBA….
- RBA states policy remain appropriate
- A$ remains high despite a drop in terms of trade, which peaked almost a year ago
- Most commodity prices have fallen
- Inflation is expected to be consistent with target over 1-2 years
- Policy is easier than most of 2011, but too early to see impact of moves
- Overall economic growth close to trend
- Sees modest US growth but continuing weakness in Europe
- No funding difficulties for Australian banks
- Labour market shows moderate job growth
AUD’s picking up again and takes out a barrier at 1.0600 to a 4 1/2 month high of 1.0603.
