The Reserve Bank of Australia is most likely going to leave interest rates where they are instead of cutting them. The U.S. Federal Reserve bank decided not to taper the stimulus package, which threw a curve ball at the Reserve Bank of Australia. It has also created a typical response for foreign exchange Melbourne. The RBA was anticipating the taper to happen. According to spokespeople the bank was relying heavily on tapering. The taper would have increased USA interest rates and helped the USD climb in value. At the moment the U.S. dollar has not climbed in value, but lost any gain it had. The RBA is not comfortable with taking interest rates down anymore than already happened for several reasons including housing prices. The RBA is hoping for stimulus to come in the form of a lower AUD, which would have happened with the USA taper.
Foreign Exchange Melbourne Favours AUD not USD
Since the taper did not begin foreign exchange Melbourne is still favouring the AUD. The RBA stated if risk is an issue they will cut rates, but it will not be done now. It will hold to see if tapering begins, as well as wait to see what the new government can do. It will take another four weeks for more interest rate cut talks to occur in Australia, which means the USA has time to make up its mind regarding the tapering issue. If tapering is finally set the RBA may not need to cut rates. If they hold again, then things might need to change. A lot can happen in the next four weeks if past news and events are any indication. The RBA also stated there is little worry about inflation, thus the rates can hold. The only concern is foreign exchange Melbourne rates in which the AUD continues to retain its value.
Australia is a commodity driven currency. A high AUD often means trouble selling exports, which weakens the economy. Australia is in a time that more exports are needed; therefore, lower AUD rates would be most welcome.
Plenty Revolving in the World affects Foreign Exchange Melbourne
Negative issues will always have their affect on the world economy. The USD has lost strength recently due to some very troubling moves by USA officials. If this pattern holds with Syrian issues, Greenpeace problems in Russia, and no Fed tapering the AUD can expect to hold its value. It is not a good thing for the economy, but in terms of investments there is something to be said for trends.
Trends for the AUD have favoured its increase in value, which helps foreign exchange Melbourne investors figure out where to keep their money for profit making. The outlook for the AUD is seen as something that will continue its gains, especially versus the USD. Going long on the AUD is the favoured move for any investors at the moment. It can always change, but reasonably one can assume better pip change towards AUD profit for another week or two unless the USA has another surprise in store.