June 4 Tuesday 10:50 GMT
LONDON – The Australian Dollar fell 90 points to 0.9650 from 0.9738 in Europe on a steady decline following the RBA’s statement saying it still had room to cut the benchmark interest rate while the exchange rate remains high. The Reserve Bank of Australia kept its Cash Rate unchanged at 2.75 percent as widely expected. (4:30 GMT)
From the RBA's accompanying statement: "At today's meeting the Board judged that the easier financial conditions now in place will contribute to a strengthening of growth over time, consistent with achieving the inflation target. It decided that the stance of monetary policy remained appropriate for the time being. The Board also judged that the inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand."
The 21-day moving average fell from 0.9725 to 0.9655. The 90-day moving average fell steadily from 0.9760 to 0.9690.