RBA policy meeting offers little incentive to break current trading range

Daily Currency Update

AUD - Australian DollarThe Australian dollar crept through 0.7750 on Tuesday, moving marginally higher on the day in what was otherwise a largely lacklustre trading session. Price action across majors was muted despite a deluge of macroeconomic indicators and uptick in key commodity prices. Analysts largely ignored the RBA’s rate statement after officials unsurprisingly left rates on hold and failed to offer any insight into amendments in the current quantitative easing program. While edits to the RBA’s rhetoric were mostly positive, investors appeared reluctant in extending gains beyond resistance at 0.7770 ahead of a key macroeconomic data prints. The Australian dollar remains firmly range bound and unlikely to shift outside the current handle without a significant shift in the underlying risk narrative. Our attentions turn to today’s quarterly GDP print and Friday’s US non-farm payroll data as key markers of direction into the weekend. Anything short of a shock under or over performance is unlikely to prompt a significant shift in direction.