RBA Statement Impact For Australian Dollar

The Central Bank of Australia (RBA) said that low interest rates serves to support theactivities of the shopping community, while the weak currency exchange rates helpedlocal enterprises to encourage their exports. RBA also confirmed that weak inflationoutlook could provide a loophole for looser monetary policy.

"Australia's domestic Data lately is generally positive," write the minutes of the meeting published Tuesday RBA (15/12) this morning. An RBA meeting had been heldon 1 December ago, produced the verdict to maintain interest rates at low level of 2percent. The level of interest rates has been going on for 7 months. "However, the members of the (RBA meeting) knowing of the existence of a reserve capacity ofevidence still in the economy."

Last week, Australia's monthly employment data record which is quite astounding. The number of workers increased to 71.400 in November, the highest since 1988, while consumer confidence no matter the more optimistic. Because of that, expectations willdecrease from RBA interest rate level 2 percent currently, subsided.

The Problem Of Commodity Prices

Australia, in the minutes of this RBA, is also still struggling with commodity price Park, including Australia's flagship iron ore, as the slack economy of China. China is the country's main trading partner for Australia. "There is still excess capacity in a number of lines of the Chinese economy," the RBA. "These conditions seem to be becoming more difficult in some time in the future, especially because the companies would be tough profit."

After the release of the minutes of the RBA, the AUD/USD traded at numbers 0.7255, up 0.10 percent from the previous position. The us dollar itself had loosened last nightahead of the start of the meeting of the FOMC tomorrow night.