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The RBA leaves the cash rate unchanged.

Written by Sam Coxhead on March 6th, 2012.      0 comments

6:00 PM (NZT) The RBA has left the cash rate unchanged for the 3rd month running. It stated that it sees the growth level close to trend, but the bias remains very much to the downside, considering the uncertainties still at play in the global economy, Europe in particular.
The data dependency will continue, and it remains poised to cut rates if conditions materially change and the inflation outlook provides the scope.
Yesterdays speech on economic conditions by Chinese Premier Wen adjusted down China’s economic growth prospects to around 7.5% for 2012, whilst leaving the 2013 expectations stable. The tone of this assessment has seen decent supply of the Australasian currencies come to market, with the NZD leading the slide. This is somewhat ironic, as it would appear logical that the AUD would be more vulnerable to a slowing Chinese economy. But the NZD underperformance has seen the NZ dollar has been pushed down through reasonable support levels at .7700 (resistance at 1.2990). The  NZD will likely recover against the AUD in the near term, but the volatility will continue throughout the week as we have Australian GDP and employment data, as well as the RBNZ monetary policy decision to come.
          Past 24 hours
  Current level Pre-RBA  % Chge since RBA   Low High
NZD/USD 0.8132 0.8160 -0.34%   0.8129 0.8289
AUD/USD 1.0604 1.0650 -0.43%   1.0601 1.0726
NZD/AUD 0.7665 0.7664 0.01%   0.7650 0.7731
AUD/NZD 1.3046 1.3048 -0.01%   1.2935 1.3072
NZD/GBP 0.5127 0.5145 -0.35%   0.5127 0.5238
NZD/EUR 0.6164 0.6178 -0.23%   0.6161 0.6278
NZD/YEN 66.20 66.40 -0.30%   66.15 67.38
NZD/CAD 0.8104 0.8128 -0.30%   0.8097 0.8204