Reserve Bank of Australia leaves cash rate unchanged for second straight meeting, weighing on the Australian Dollar as inflation cools.
The Australian Dollar fell 0.15% to 112.20 against the Japanese Yen in Asian trading after the Reserve Bank of Australia kept its cash rate at 4.35%. The decision marks the second consecutive hold as inflation eased below forecasts in Q2.
Markets had priced in no change, with overnight index swaps showing near-zero odds of a hike. TD Securities noted restrictive policy is slowing domestic activity, particularly housing, while the full impact of prior tightening remains pending.
Investors now await RBA Governor Michele Bullock’s press conference at 05:30 GMT for further policy guidance. The Japanese Yen gained despite weak June Current Account data raising economic concerns.