RBA kept rates steady at 2% - BBH

Research Team at BBH, notes that the RBA met and kept rates steady at 2%, as expected.

Key Quotes

“The RBA did push back against recent AUD gains, as Governor Stevens noted that currency appreciation could complicate the economic adjustment. The Aussie initially gained on what was perceived as half-hearted jawboning, but has since sold off and is down 1% today.

Since the last RBA meeting March 1, AUD had gained 7% against USD going into this meeting. Before the decision, Australia reported a larger than expected February trade deficit. On Monday, February retail sales came in weaker than expected, flat m/m vs. consensus for a 0.4% gain. Retracement objectives from the January-March rise in AUD come in near .7380 (38%), .7275 (50%), and .7170 (62%).”