AUD to USD Exchange Rate Fell on RBA’s Firm On-hold Stance

AUD to USD Exchange Rate Fell on RBA’s Firm On-hold Stance

On Tuesday, the AUD to USD exchange rate dwindled after the Reserve Bank of Australia (RBA) expressed a firm on-hold stance on its monetary policy. 

Moreover, the risk-sensitive Aussie declined 0.07% to $0.73 from its last climb of 0.12%.

Accordingly, RBA Governor Philip Lowe stated that the central bank would retain its current interest rate, weighing down the AUD to USD exchange rate. 

Subsequently, the policy would be unchanged until the inflation reaches the target range of 2.00-3.00%.  In addition, a slew of Australian economic data came in today. 

For instance, retail sales, the primary indicator of consumer spending,  hiked up to -1.70% month-on-month from the August rate of -2.70%. 

Consequently, the trade balance, which measures the difference between imports and exports, improved to 15.08 billion from the previous number of 12.12 billion. 

Accordingly, the US dollar index, which trails the greenback against its six rival currencies, extended 0.18% to $93.94.

Meanwhile, American currencies hiked on the trading market.  

In particular, the Canadian dollar soared 0.06% to $1.26 as the Argentine peso strengthened 0.30% to $98.89. 

Similarly, the Mexican peso rose 0.24% to $20.53 as the Brazilian real climbed 0.02% to $5.46. 

Then, Asia-Pacific currencies were mixed as the AUD weakened. 

Japanese yen escalated 0.24% to $111.13 as the South Korean won edged up 0.15% to $1,185.92

Likewise, the New Zealand dollar heightened 0.06% or $1.70 as the Singapore dollar elevated 0.04% to $1.36. 

The Malaysian ringgit boosted 0.14% to $4.18, while the Chinese yuan plunged 0.39% or $6.45.

Also, the Hong Kong dollar plummeted 0.04% to $7.78 as the Indian rupee slumped 0.15% or $74.45. 

Euro to Dollar Exchange Rate Slumps as AUD sinks

Furthermore, the euro slumped 0.17% or $1.16, retreating from its last hike of 0.12%. 

Consequently, the Spanish purchasing managers index (PMI) declined to 56.90 from the previous data of 60.10. 

Correspondingly, the Italian services PMI plummeted to 55.50 level from 58.00 last August. 

Then, the Eurozone services PMI decreased to 56.40 from the last level of 59.00. 

Meanwhile, other European currencies are mostly up as the AUD to USD exchange rate declined. 

The Swiss franc edged up 0.18% to $0.93 as the Pound sterling rose 0.02% to $1.37.

Following the surge, the Swedish krona increased 0.15% to $8.72 as the Danish krone extended 0.18% to $6.41.

Then, the Russian ruble enhanced 0.44% to $72.62, while the Norwegian krone lowered 0.11% to $8.56.