There wasn’t much new offered by the RBA statement. Nonetheless it noted the near term impacts from the trade policy of the US. It noted the increase in equity market volatility “partly because of concerns about the direction of international trade policy in the United States”. And, there has been “some tightening of conditions in US dollar short-term money markets” for reason other than fed funds rate. And such tightening has “flowed through to higher short-term interest rates in a few other countries, including Australia.”
AUD is steady after the release. It was lifted notably against USD earlier today, with support from AiGroup manufacturing index which hit record high in March. For more, more consolidation is likely above 0.7642 temporary low. Break of 0.7705 minor resistance will prompt strong recovery. But the key near term resistance is at 0.7784. As long s 0.7784 holds, near term outlook remains bearish and further decline is expected ahead.
