Australia March trade balance is surplus for the 4th consecutive month, but at a 3-month low with imports flat while exports down 2%.
The RBA left cash rate unchanged at 2.50% as expected and reconfirmed the importance of a price stability period. The Australian officials repeated that the Aussie still remains at historical highs level, which is not favorable for the economic boost. The inflation is in line with RBA’s target, while the labor market needs more time to show more improvement.
AUDUSD spiked to 0.9317 when the news released but quickly drop down to 0.928 as before the news. However, by the end of Asian trading session, aussie dollar has moved back to 0.9315 and expected to move up further toward 0.94