The Australian dollar rose Friday after the central bank's latest
economic review signalled market pricing as a good, but not definitive,
view for policy ahead and as investors looked ahead to U.S. non-farm
payrolls for further signals on the timing of a widely expected Federal
Reserve rate hike this year.
Traders and analysts expect the data to show that the U.S. economy added 234,000 jobs in January, slowing from a gain of 252,000 in December, while the unemployment rate was forecast to hold steady at 5.6%.
AUD/USD traded at 0.7819, up 0.27%, after the statement, while USD/JPY traded at 117.42, down 0.10%. EUR/USD changed hands at 1.1462, down 0.14%
The Reserve Bank of Australia Friday eased the outlook for inflation while leaving clues to its next policy moves deliberately vague.
The quarterly Statement of Monetary Policy also assumed a lower path for the cash rate and took into account the fall in the Australian dollar, but still led to a downgrade in its growth forecast. The inflation view eased to 1.25% for headline CPI by June 2015 from an earlier range in November of 1.50% to 2.50% - and well below the mid-point aim of the 2% to 3% target.
The forecasts also assumed the cash rate moves broadly in line with market pricing but the RBA cautioned that doing this "doesn't represent a commitment by the board to any particular path for policy." The last time the RBA used market pricing in its cash rate assumption forecast was in May 2011.
Read more Click here / www.trade4x.net
Traders and analysts expect the data to show that the U.S. economy added 234,000 jobs in January, slowing from a gain of 252,000 in December, while the unemployment rate was forecast to hold steady at 5.6%.
AUD/USD traded at 0.7819, up 0.27%, after the statement, while USD/JPY traded at 117.42, down 0.10%. EUR/USD changed hands at 1.1462, down 0.14%
The Reserve Bank of Australia Friday eased the outlook for inflation while leaving clues to its next policy moves deliberately vague.
The quarterly Statement of Monetary Policy also assumed a lower path for the cash rate and took into account the fall in the Australian dollar, but still led to a downgrade in its growth forecast. The inflation view eased to 1.25% for headline CPI by June 2015 from an earlier range in November of 1.50% to 2.50% - and well below the mid-point aim of the 2% to 3% target.
The forecasts also assumed the cash rate moves broadly in line with market pricing but the RBA cautioned that doing this "doesn't represent a commitment by the board to any particular path for policy." The last time the RBA used market pricing in its cash rate assumption forecast was in May 2011.
Read more Click here / www.trade4x.net
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