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RBA leaves rates unchanged at 3%; statement more dovish-than-expected

The February RBA monetary meeting ended with rates left unchanged at 3%, its first meeting of the year.

According to RBA: "The inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand."

RBA added: "Global growth is forecast to be a little below average for a time, but the downside risks appear to have abated, for the moment at least."

According to Greg McKenna, CEO at Global FX: "AUD doesn't like "afford scope to ease policy further, should that be necessary to support demand" in RBA statement it seems... the pair is well off highs."

Greg adds: "RBA statement is seriously dovish compared to what might have been expected - rates look headed lower from the RBA's language."

RBA also pointed once again that the Aussie is trading at higher levels than expected.

Forex: AUD/USD breaks below 1.0430 on RBA unchanged rates at 3.00%

AUD/USD is currently breaking lower to fresh session lows at 1.0418 and falling, from initial 1.0440 level the pair was, moments before the RBA statement came in with rates unchanged at 3.00%. The pair retraces from session and weekly highs at 1.0458, following better than expected housing and trade balance data.
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