The RBA kept the key interest rate on Tuesday, leaving the door ajar to further stimulate the economy if necessary.
At the end of the November meeting, the Reserve Bank of Australia (RBA) kept the rate at 0.75% and slightly changed its economic forecasts, reducing GDP growth and unemployment.
“Given global trends and evidence of available capacity in the Australian economy, there is a reason to believe that it will be necessary to maintain low-interest rates for a long period,” said RBA head Philip Lowe.
“The board will continue to monitor developments, including the labor market, and is ready, if necessary, to further soften monetary policy,” he added.
The central bank has already cut rates by 75 basis points since June, and investors expect a final reduction to 0.50% next year.
The RBA also lowered its forecast for economic growth this year to 2.25% from 2.50%, but still plans to reach 3% by 2021.
Over the past few years, the central bank has had to repeatedly reduce forecasts of economic growth and inflation, as consumers have experienced difficulties with sluggish wage growth and record-high debt levels.
The AUDUSD pair at the time of publication is trading with an increase at the mark of 0, 6914.
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