The third cut of the Reserve Bank of Australia caused the GBP AUD to gain some altitude in today’s trading. The RBA has cut its official interest rates to record lows of 0.75% today at its meeting.
The decision was enough to weaken the AUD, pushing the GBP AUD in positive territories. The GBP AUD exchange rate went up by 0.93%, or 0.0169 points, in sessions. The GBP AUD pair currently trades for AU$1.8374 against its previous close of AU$1.8205.
The cut went as the four big banks have predicted and has left the RBA one additional 25bps cut away from its previous QE indication.
RBA governor Philip Lowe said that the easing aims to lift employment and inflation rate in Australia. Lowe has not also ruled out the possibility of further rate cuts in the future.
Based on the move of the RBA, critics are saying that the bank is now less confident about the current stimulus.
RBA released an official statement on Tuesday saying that the low interest rates and recent tax cuts should support the country’s growth. This October rate cut is the third this year after the consecutive rate cuts in June and July.
The Losing End
Aside from the Aussie’s losses in the GBP AUD pair, the AUD also lost against other major currencies in sessions.
First, the AUD USD trading pair contracted by 0.79%, or 0.0054 points. The pair currently trades for $0.6695 against its last close of $0.6749.
And the single currency also gained against the Australian dollar by 0.81% or 0.0131 points in sessions. The EUR AUD pair presently exchanges for $1.6274 and has climbed to levels from AU$1.6085 to AU$1.6086.
Meanwhile, the AUD NZD exchange rate barely moved up by 0.01%, or 0.0001 points, in today’s trading. The AUD NZD trading pair has swung from levels between NZ$1.0751 and NZ$1.0809.
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