03.03.2015 - Reserve Bank of Australia left interest rates unchanged

Today the Reserve Bank of Australia decided to keep interest rates unchanged at 2.25%, after reduced them at the previous meeting. Analysts expected the continuation of monetary policy easing and saving rates has led to the growth of quotations of the Australian currency. It is worth noting that the RBA also said about the stimulating effect of low oil prices, the fundamental overvaluation of the Australian currency and that inflation will maintain within the target range. Given the fact that the pace of GDP growth remains below trend, export prices remain low, and investment in the mining sector are reduced, and the situation on the labor market worsens, we recommend holding short positions with the potential to fall of AUD/USD to 0.75 and maintain a medium-term negative outlook.

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