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Daily Forex Technical Strategy – Forex Factory

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From rba.gov.au|1 hr 4 min ago|2 comments

At its meeting today, the Board decided to leave the cash rate unchanged at 0.75 per cent. While the outlook for the global economy remains reasonable, the risks are tilted to the downside. The US–China trade and technology disputes continue to affect international trade flows and investment as businesses scale back spending plans because of the uncertainty. At the same time, in most advanced economies, unemployment rates are low and wages growth has picked up, although inflation remains low. In China, the authorities have taken steps to support the economy while continuing to address risks in the financial system. Interest rates are very low around the world and a number of central banks have eased monetary policy in response to the persistent downside risks and subdued inflation. Expectations of further monetary easing have generally been scaled back over the past month and financial market sentiment has improved a little. Even so, long-term government bond yields are around record lows in many countries, including Australia. Borrowing rates for both businesses and households are also at historically low levels. The Australian dollar is at the lower end of its range over recent times. The outlook for the Australian economy is little changed from three months ago. After a soft patch in the second half of last year, a gentle turning point appears to have been reached. The central scenario is tweet at 10:30pm: RBA: Prepared to ease monetary policy further if needed, reasonable to expect an extended period of low rates -BBG #AUDUSD #RBA tweet at 10:33pm: RBA: Outlook for economy little changed compared to 3 months ago, easing since June supporting employment and income growth -BBG $AUDUSD #RBA tweet at 10:34pm: RBA: Sees inflation close to 2% in 2020 and 2021, central scenario is GDP growth around 2.25% in 2019 -BBG #RBAOfficial cash rate remains at 0.75 per cent following Reserve Bank’s November meeting Australia’s official cash rate has been kept on hold for now – although most financial experts expect at least two more cuts by early 2020. At its November meeting this afternoon, the Reserve Bank of Australia adopted a wait-and-see approach by holding the interest rate at the historic low of 0.75 per cent. The decision came off the back of a 25 basis point cut at last month’s meeting, after another two cuts in June and July. However, economists almost universally predict further cuts are inevitable in the coming months. According to CoreLogic research director Tim Lawless, today’s decision came as no surprise. “Considering the RBA is running out of conventional monetary policy ammunition, the decision to hold the cash rate at the historic low of 0.75 per cent was widely anticipated,” he said. “The decision to keep rates on hold was supported by the latest labour market and inflation readings, which s

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