The Australian dollar was in the spotlight of the foreign exchange market on Tuesday morning, after the RBA decided to lower the base interest rate. The Australian regulator reduced the rate by 25 basis points to 1%, which had a positive effect on the national currency rate.
Recall that the
Reserve Bank of Australia lowered the rate for the second month in a row. The decision on a new rate cut was taken to bring the inflation rate to the target level. RBA announced that it will continue to monitor the state of the labor market and, if necessary, adjust policies to support sustainable economic growth.
For the 1st quarter, the Australian economy grew below 1.8%, which was due to the long period of lowered incomes and the fall in housing prices. Prospects for consumption still remain the main internal problem. However, an increase in the expected growth in household income is expected to support spending.
Employment conditions continued to be at a good level, despite the fact that the unemployment rate reached 5.2%. Overall wage growth remains low, despite an increase in the private sector.
Inflationary pressure remains low but is expected to increase soon. Lending conditions, especially for small and medium businesses, remain tough.
The Australian dollar rose from 0.69742 to 0.69861 after the release of the RBA. At the time of writing, the Australian dollar rose by 0.29% to 0.6986 USD.
For the
single European currency, today is expected to be quite a calm day in terms of economic data. German retail sales data coming out today may have a slight and short pressure on the euro. At the time of the writing, the euro fell by 0.12% to $ 1, 1285.
The UK Construction index will be released later this morning. We can expect the
pound to most likely ignore this release, with the exception of, particularly negative numbers. Brexit and the race for prime minister will continue to be the key driver for the pound.
At the time of writing, the
British currency fell 0.03% to $ 1.2627.
Forex calendar >Forex trading recommendations:EURUSD: Sell. Entry point – 1, 1288. Take Profit – 1, 1269. Stop Loss – 1, 1320.USDCAD: Sell. Entry point – 1, 3135. Take Profit – 1, 3116. Stop Loss – 1, 3168.AUDUSD: Sell. Entry point – 0, 6973. Take Profit – 0, 6957. Stop Loss – 0, 7001. 
