Aussie drops as RBA cuts cash rate to stimulate growth
On Tuesday, the Austrian dollar plunged when the central bank reduced its official cash rate in an attempt to stimulate the national economy and support a weaker exchange rate. The given move came after a gloomy Caixin manufacturing PMI poll on China.
The currency pair AUD/USD was worth 0.7588, showing a 1.04% sag, while USD/JPY dared to go down 0.4%. By the way, Japanese markets are closed for Constitution Day.
The RBA cash rate verdict witnessed a shocking 25-point cut to a record minimum of 1.75%.
By the way, earlier, April’s Caixin Manufacturing PMI demonstrated 49.4, below the expected outcome of 49.9. All the categories of this index pointed out to worsening month-on-month conditions. Output rebounded below the 50-point neutral level. The given fluctuations show that the national economy doesn’t have a solid foundation for recovery. Furthermore, it hasn’t completed its bottoming out yet. Australian authorities definitely require keeping an eye open on the risk of a further economic downturn.