AUD benefits from hesitant RBA

As expected, the RBA left its key rate unchanged at 2%. AUD-USD nonetheless rose as a result of the decision as following weak investment data outside the mining sector, there had been speculation the RBA might cut rates again. 

First of all it is likely to wait for the effects of the first rate step and moreover it is unlikely to feel very comfortable with even lower interest rates against the background of the developments on the property market. Instead the RBA's hopes will focus on the Fed and the prospect that the normalisation of its monetary policy will drive AUD-USD down without the RBA having to do anything, says Commerzbank.