The RBA left their cash rate unchanged at 4.10% Tuesday, the third leave in a row. The central bank left the door open to further hikes if growth starts to rise again over the second half of the year and inflation remains stubborn. The Australian Dollar (AUD) edged lower post release against the US Dollar (USD) falling from around 0.6460 to 0.6370. The RBA acknowledged the Chinese economy, in particular mining resources which Australia buys massive quantities of, is heading into a period of decline. Australian Trade balance slipped to 8.04B compared to 10.05B expected adding to the uncertainty. Hovering around lows at 0.6370 right now- we are not sure how long the Aussie can tread water.
The current interbank midrate is: AUDUSD 0.6380