The Reserve Bank of Australia (RBA) left the interest rate on hold at 2.5% ahead of the government elections on the 7th September. The Aussie dollar has weakened significantly recently as traders have tried to front run the tapering of bond purchases by the US Federal Reserve. Governor Stevens highlighted the depreciation of over 15% for the AUD since April, but reiterates the currency remains high. The majority of analysts and economists had tipped the central bank to leave rates unchanged after last month’s 25 basis point cut.
↔ AUDUSD 3rd September Source: Abshire-Smith