FX.co ★ The decision of the RBA led to the growth of the Australian dollar

The Australian dollar today rose sharply against the US dollar after the Reserve Bank of Australia left the key interest rate unchanged at 1.50%, saying that interest rates match the targets for GDP and inflation. Some experts feared that the regulator would adhere to a softer position with regard to monetary policy, hinting at its possible further weakening.

It is important to note that the RBA maintains the current interest rate which has been in place since August 2016 while many central banks have raised rates this year or are preparing to change their monetary policy.

The RBA said that if the rates were raised, the higher rate of the Australian dollar would slow the recovery and inflation while current low rates support the Australian economy.

As for the housing market, the RBA noted the absence of major changes in the last 6 months. Concerns in the Central Bank are caused by household debt which outstrips the growth of their incomes.

Good data on the growth of retail sales also supported the Australian dollar.

According to the report, Australian retail sales in October of this year increased by 0.5%, being much higher than the forecasts of analysts who expected an increase of only 0.3%. It should be noted that in September of this year, retail sales grew by only 0.1%.

As for the technical picture of AUDUSD pair, the trade continues to be conducted in the side channel. The pair is gradually moving to a rather significant resistance level of 0.7640, the breakthrough of which will lead to a change in the range and the update of the upper boundary of the channel at 0.7725. In case of another unsuccessful attempt to exit above 0.7640, you can count on a repeated decrease to the lower border of the channel to the area of 0.7530.

The Japanese yen ignored today's speech by the Governor of the Bank of Japan. At the scheduled meeting, Kuroda discussed the economy with Japanese Prime Minister Abe.

According to the manager, the world economy demonstrates strong growth due to the strengthening of developed economies, while the target inflation rate of 2% in Japan is still very far away. Kuroda noted that he will patiently adhere to the policy of powerful mitigation and the weak yen will, in the meantime, contribute to the growth of exporters' profits.

As for the technical picture of the USDJPY pair, going beyond the level of 112.90 will lead to an increase in the positions of US dollar buyers with the renewal of the upper border of the channel at 114.50. This is being held by sellers since April of this year.