Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Aussie Drops on RBA Forecast Cut; U.S. Dollar Edges Up

Published 02/07/2019, 11:47 PM
Updated 02/07/2019, 11:47 PM
© Reuters.

© Reuters.

Investing.com - The Australian dollar fell against the U.S. dollar on Friday in Asia after the Reserve Bank of Australia (RBA) slashed its GDP growth forecast for the year through June.

In its quarterly statement on Monetary Policy today, the central bank cut the GDP growth forecast to 2.5% from the previous 3.25%.

For the year to June 2020, the RBA cut its projection to 2.75% from 3.25% and sees 2021 growth at 2.75%. Unemployment is seen at 5.0% through 2019, unchanged from its current level.

On inflation, the headline CPI forecast was cut to 1.25%.

The AUD/USD pair fell 0.3% to 0.7077 following the news. The Australian currency has now shed 2.4% of its value so far this week.

Meanwhile, the U.S. dollar traded near a two-week high, supported by safe-haven demand, after President Donald Trump said this week he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline to achieve a trade deal.

White House economic advisor Larry Kudlow warned that there is a "pretty sizable distance to go" before China and the U.S. could reach an agreement, while Treasury Secretary Steven Mnuchin also noted this week that "wide range of issues" remains to be worked out.

China and the U.S. have until the start of March to strike a trade deal before additional tariffs on Chinese imports kick in.

The U.S. dollar index that tracks the greenback against a basket of other currencies last traded at 96.345, up 0.1%.

Elsewhere, the USD/JPY pair edged down 0.08% to 109.70.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.