The Reserve Bank of Australia ended a 30th straight meeting with rates at a record-low of 1.50 percent yesterday. Although it has left the door open to future rate cuts amid pressure on the global economy and the downturn in the Australian housing market.
Their GDP data released today reinforced recent evidence of broader concern over the outlook for the country’s economy. Their annual growth rate was only 2.3 per cent, against the forecast of 2.5 per cent. But the RBA still expected the economy to grow by about 3.0 per cent in 2019 thanks to a strong labour market.
Meanwhile, the US dollar held gains against its peers this morning, thanks to higher U.S. yields and better-than-expected data released today. Strong data on U.S. services industries and new home sales eased some fears about the state of the world’s top economy.