Investing.com – The australian dollar is almost unchanged on Tuesday following the decision of the Reserve Bank of Australia (RBA) cut rates to a record low 1.25%.
The pair AUD/USD was up 0.06% to 0,6979 at 09: 50 am. The australian dollar has reacted to the decision of the RBA to reduce rates, which was very expected.
The governor Philip Lowe has reiterated his prediction that the australian economy is heading for growth of 2.75% this year and next year.
“The central scenario remains that the australian economy is expected to grow approximately 2.75% in 2019 and 2020. This perspective is reinforced by an increase in investment in infrastructure and renewed activity in the resource sector, in part in response to the price increase. australian exports,” said the governor.
During this time, the dollar index was also almost stable after reaching a low of one week near its lowest level in the previous week, due to a manufacturing activity weaker than expected in may.
The us dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.06% to 97,132.
The mexican peso rose slightly against the u.s. dollar, while the currency continued its turnaround after it plunged last week after the threat of sudden imposition of tariffs by the us president Donald Trump.
“The information mexican are quite powerful. Nobody expected really that they are with China,” said Chris Weston, head of research at liquid markets, a foreign exchange broker. “Mexico is a large trading partner of the United States,” he said.
The pair USD/JPY has slipped from 0.01% to 108,05.
The pair USD/CNY has gained 0.1% to 6,9110.