The Reserve Bank of Australia once again hiked rates on the Australian Dollar(AUD) from 3.5% to 3.75%.
The RBA Governor stated that the downturn in Australia was just “mild” compared to other major economies. The Governor left no clues as to the future of monetary policy, leaving the markets to guess at what the next move might be.
During the same time, the Bank of Japan was meeting about the Japanese Yen(JPY). There was wide speculation in forex trading circles that the BOJ would be preparing to intervene in the forex markets to stem the rise in the Yen against the US Dollar. It seems that those concerns were unfounded, the BOJ only discussed the implementation of a new lending facility to support the markets.
The Australian Dollar has strengthened in the hours following the decision and the Yen has weakened.
The RBA Governor stated that the downturn in Australia was just “mild” compared to other major economies. The Governor left no clues as to the future of monetary policy, leaving the markets to guess at what the next move might be.
During the same time, the Bank of Japan was meeting about the Japanese Yen(JPY). There was wide speculation in forex trading circles that the BOJ would be preparing to intervene in the forex markets to stem the rise in the Yen against the US Dollar. It seems that those concerns were unfounded, the BOJ only discussed the implementation of a new lending facility to support the markets.
The Australian Dollar has strengthened in the hours following the decision and the Yen has weakened.
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