The early Monday's report showed that the Australian current account deficit widened more than expected, causing a 0.23% gain in AUD/USD. However, the Aussie failed to sustain gains against the before the RBA announced its interest rate decision. The AUD/USD currency pair fell to the 0.7855 mark and then retreated back to the 0.7668 area.
The RBA interest rates were unchanged for 13 consecutive months, as the Central Bank remained a "hostage" of household debt levels, which prevented any changes in monetary policy. The rate of 1.50% is expected to be kept on hold, while the global economic growth continues to accelerate. In addition, economic data suggested that the country's economy was still in a good shape.
| Historical Data Table: RBA Cash Rate | |||||
| Date | 02.05.2017 | 06.06.2017 | 04.07.2017 | 01.08.2017 | 05.09.2017 |
| Actual | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
| Forecast | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
| Initial Reaction on Main Pairs | |||||
| Open Price | Close Price | % Change | |||
| AUD/JPY | 87.101 | 86.945 | -0.18% | ||
| AUD/USD | 0.79692 | 0.79558 | -0.17% | ||
| EUR/AUD | 1.49473 | 1.49706 | 0.16% | ||
| GBP/AUD | 1.62349 | 1.62605 | 0.16% | ||