The Australian dollar fell on Tuesday against all of its 16 major rivals after the governor of the central bank of the South Pacific nation said interest remains high, according to Bloomberg.
Governor Glenn Stevens with the Reserve Bank of Australia said the national economy has been assisted by the Aussie's consistent slippage, though he noted the monetary unit remains too high. The RBA left interest rates unchanged at an all-time low level on Tuesday. Market analyst David Ferranti with FXCM told The Wall Street Journal on Tuesday that the Aussie is enduring pressure from discussion about interest rates remaining too high.
"However, the Reserve Bank also reinforced expectations for interest rates to remain on hold despite the prospect of a continued deterioration in the Australian labor market, which in turn is supportive for the Aussie," the market analyst told the news source.
The Australian dollar moderately slipped roughly 0.1 percent against the U.S. dollar after having surged about 0.4 percent earlier on Tuesday against the greenback.
The RBA opted to leave borrowing costs at 2.5 percent on Tuesday, which was consistent with expectations, The Wall Street Journal reports.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.