The Australian dollar sits a little higher in the aftermath of the RBA decision
The Reserve Bank of Australia cut its cash rate by 25 bps from 1.25% to 1.00% earlier as expected and that gave the aussie a bit of a whipsaw with AUD/USD dipping to a low of 0.6959 before settling higher just above 0.6980 currently.
The statement showed that the central bank left the door open for more rate cuts but a subtle change in the language on future policy adjustment (they added "if needed" to that) shows that they are in no urgency to act possibly until Q4 2019.
Meanwhile, the dollar is holding slightly weaker but currency ranges for the most part remain narrow and subdued after a hectic start to the week yesterday. US equity futures are flat while Treasury yields are a little lower, keeping market participants on edge awaiting more trade developments between US and China.
Looking ahead, we'll have a couple of economic data points to move things along but traders are now basically in a "wait and see" mode hoping for more clarity on the trade front from either the US or Chinese camp while having to watch global economic conditions continue to stutter as seen from PMI data yesterday.