🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Forex - AUD/USD edges lower after RBA holds rates

Published 07/07/2015, 02:38 AM
© Reuters.  Aussie slips lower vs. greenback after RBA rate statement
AUD/USD
-
EUR/AUD
-

Investing.com - The Australian dollar edged lower against its U.S. counterpart on Tuesday, after the Reserve Bank of Australian left interest rates on hold and as concerns over the consequences of Sunday's referendum in Greece continued to weigh.

AUD/USD hit 0.7465 during late Asian trade, the session low; the pair subsequently consolidated at 0.7488, slipping 0.15%.

The pair was likely to find support at 0.7447, Monday's low and a six-year low and resistance at 0.7537, Monday's high.

In a widely expected move, the RBA held its benchmark interest rate at a record-low 2.00% on Tuesday.

Commenting on the decision, RBA Governor Glenn Stevens said that although the economy is growing at a below average pace, one good sign is that there are higher rates of borrowing.

Stevens added that while the Australian dollar had fallen against the US dollar, it has not dropped as much against other currencies.

Meanwhile, sentiment remained under pressure after Greek voters overwhelmingly rejected conditions of a rescue package from creditors on Sunday, adding to doubts over the country's future in the euro zone and deepened a standoff with its lenders.

European officials have indicated that they will only continue to finance Greece in return for far-reaching economic reforms.

Greek Prime Minister Alexis Tsipras welcomed the outcome of the vote and said Athens was returning to negotiations with the express goal of reopening banks, which have been shut for over a week after capital controls were imposed.

International Monetary Fund Managing Director Christine Lagarde warned Athens on Monday that policy prohibits lending to countries that have missed payments, although it can offer advice of the staff.

Without more emergency funding from the European Central Bank, Greece's banks could run out of cash within days.

The Aussie was higher against the euro, with EUR/AUD edging down 0.17% to 1.4717.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.