RBA Cash Rate: Unchanged But AUD Still Uncomfortably High

The RBA decided to leave the cash rate unchanged at 2.5%, however they feel they need a lower AUD rate is required to achieve a balanced rate of growth.

Leading up to the release the market favoured no change in the cash rate. So for any trader looking for a movement of any interest would have enjoyed a shock decision to get the markets moving. Today we have seen mixed results from Retails Sales (slightly better than expected) along with Account balance (slightly lower than expected) so all AUD eyes were on today's rate decision.

The RBA expect unemployment to edge higher whilst the economy continues to grow, but beneath its recent trend as "the economy adjusts to lower levels of mining investment". Whilst household and business sentiment indicators have shown modest improvements, public spending is expected to be relatively weak.

All in all, the most important thing to glean from today’s statement is the RBA still feels the exchange rate is too high.
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Technically today’s talk does little to change the charts. At best we are ranging between 0.90520-0.9170 which may provide good intraday opportunities. Regardless my next target remains 0.90 and 0.893 in line with bearish momentum and expected USD strength.
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