RBA offers a dovish hold as it keeps rates at 4.35%- AUD/USD falls

Earlier this morning the Reserve Bank of Australia (RBA) did as the majority of analysts expected and kept their OCR (official cash rate) on hold at 4.35%. However, what many had not expected was a more dovish slant in the comments accompanying the decision. The RBA governor, Michele Bullock stated that inflation was moderating and wage growth was not expected to increase. The RBA wants to allow time for the previous rate increases to take effect. So, the AUD/USD, which closed in the US last night at 0.6620, fell from around that level, to a session low so far at 0.6572. That means it has just dipped below its 200 day moving average (now at 0.6579)  and it is hovering around that level right now. The AUD/USD has not been helped by falls in the Chinese stock markets today too. It is currently trading at 0.6582