AUD: Post RBA, focus shifts to GDP - BBH

Research Team at BBH, notes that the Reserve Bank of Australia left policy on hold, with the cash rate at 1.5%. 

Key Quotes

“This was widely expected.  While the economy has slowed, the headwinds may be abating soon, and the central bank remains concerned that lower rates will fuel household borrowing and real estate investing.  First thing tomorrow in Australian time, Q3 GDP will be reported.  It is expected to contract by 0.1% and bring the year-over-year rate to 2.2% from 3.3%.  However, the mining adjustment appears to be in the late stages, and the rise of metal prices and the apparent stabilization of China are positives.”

“The Australian dollar rally ran out of steam yesterday near $0.7500, the same place it was stopped last week.  A break of $0.7420 now would undermine the near-term technical outlook.”