Forex Trading News – Australian interest rate has not been changed

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Forex News: Australian Dollar holds steady after Greek NewsThe RBA policymakers on their monthly meeting have decided to leave the interest rate unchanged at 4.75%. The decision was widely expected due to major imbalances among different sectors of the domestic economy , despite its expansion (mining is expanding rapidly, unlike other important sectors); furthermore there are great concerns about global recovery and uncertainty which mainly comes from the debt problems in the Euro zone peripheral economies. Moreover, the surging commodity prices have injected high rates of inflation which obstruct as well the recovery process. Australia’s national income is growing sustainably, though slowdown that was observed in some industries of the economy have made the Bank more cautious, added to this the uncommon high levels of the AU Dollar (never seen in the last 20 years), have created dampening effect among the country’s average households. The steady pace to the RBA’s monetary policies was broadly expected by the majority of the participants in the markets, though it has surprisingly weighed on the Aussie. Since the announcement of the news the AUDUSD pair has plummeted losing some 42 pips in few minutes, to end to a session low of 1.0663, the pair is now trading at 1.0667.