Aussie eases Tuesday as central bank holds rates

Aussie eases Tuesday as central bank holds rates

7 July 2015, 08:53
News
0
494

On Tuesday the Australian dollar was weaker as the Reserve Bank of Australia left interest rates on hold. Fresh news from Greece spurred renewed concerns.

The Australian dollar eased on Tuesday as the central bank held the cash rate steady at a record low 2% as expected, adding that the currency needs to fall further.

AUD/USD was last at 0.7491 shedding 0.11%.

Glenn Stevens in a statement said that the available data suggests that the Australian economy has continued to grow over the past year, "but at a rate somewhat below its longer-term average."

The rate of unemployment, though slightly higher, has been generally steady.

"Overall, the economy is likely to be operating with a degree of spare capacity for some time yet. With very slow growth in labour costs, inflation is forecast to remain consistent with the target over the next one to two years, even with a lower exchange rate."

Earlier, the Australia AI/HIA June construction index fell 1.4 points to 46.4.

The euro held weaker as Greece received bad news from the IMF which said that policy prohibits lending to countries that have missed payments, although it can offer advice of the staff.

EUR/USD declined 0.28% to 1.1027 in Asia, while USD/JPY was quoted at 122.73, 0.13% higher.

Share it with friends: