The Australian Dollar was able to recover after falling earlier. Overview for 03.09.2019

On Tuesday afternoon, AUDUSD recovered after plunging due to the RBA’s comments.

The Australian Dollar recovered against the USD after falling earlier on Tuesday morning. The current quote for the instrument is 0.6724.

The Reserve Bank of Australia kept the rate intact at 1.00%. No revisions were expected, but it looks like investors were ready for any possible scenario. 

In the comments, the RBA said that it might cut the rate in case the economic situation required. According to the regulator, interest rates may remain low for the long term. Among weak spots in the Australian economy is the consumption, predictions for which are still very uncertain. Another thing that worries the regulator is the inflation, which is also expected to be quite low. According to the RBA’s key scenario, the CPI may be 2% or less in 2020.

Currently, the Reserve Bank of Australia estimates the Aussie’s rate as close to all-time lows. We remind you that earlier the RBA mentioned on several occasions that the national currency was too expensive and interfered with the country’s economic development.

In general, the Australian regulator didn’t say anything new in comparison with its previous meeting. However, market players see that the RBA is ready to act if necessary. It means that the rate may be cut as early as in November. This is exactly what made the Aussie fall in the morning.