Australian dollar sinks

Open demo account
FOREX trading implies serious risk and can result in the loss of your invested capital

Financial and commodity markets analytics

The Reserve Bank of Australia slashed interest rates yesterday to an all time low of 0.75% which was largely in line with market expectations but the monetary statement was more dovish than analysts had been expecting when sent the Australian dollar spiraling downwards towards its lowest level in nearly a decade.

The RBA raised concerns over the state of the global economy and concerns on the state of the employment sector which they believe will make it difficult to hit the central banks inflation target.

The problems surrounding the current trade dispute between China and the US are also causing problems for the Chinese economy and with the former being Australia’s biggest trading partner, any slowdown there is likely to spill over to the Australian economy.

"The US-China trade and technology disputes are affecting international trade flows and investment as businesses scale back spending plans because of the increased uncertainty. In China, the authorities have taken further steps to support the economy, while continuing to address risks in the financial system. A slowing Chinese economy means the country will need fewer Australian minerals” said RBA governor Philip Lowe.

Mr Lowe also noted that the RBA will be keeping a close eye on matters over the coming months and unless there is a rebound in the jobs market and a marked improvement in the overall economy the bank may be forced to lower rates even further which is not going to sit well for the Australian dollar

"The board will continue to monitor developments, including in the labour market, and is prepared to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time," MrLowe said.

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Fibo Markets

FIBO Markets Ltd. (ex. FIBO Group Holdings Ltd.) is authorized and regulated by the CySEC (licence no. 118/10) and operates in accordance with the Markets in Financial Instruments Directive (MiFID) of the European Union.

Unfortunately, our services are not available to individuals residing in Canada, the United States of America, North Korea, Iran, Iraq, Israel, Australia, Belgium, or Japan.

29 Agias Zonis, 1st Floor, 3027, Limassol, Cyprus

© 1998—2023 FIBO Markets Ltd. (ex. FIBO Group Holdings Ltd.)

IMPORTANT: Please be informed, that our services are available for Professional Clients only. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Please note that our services are provided only to the residents of the following counties (in alphabetical order): Austria, Bulgaria, British Virgin Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Kazakhstan, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Oman, People's Republic of China, Poland, Portugal, Romania, Russia, Slovakia,Slovenia, Spain, Sweden, Ukraine, United Arab Emirates.

Please feel free to contact out Support in order to get further assistance.