Australian dollar drifts lower following RBA rally

THE Australian dollar has drifted lower after getting a boost on Tuesday from the Reserve Bank's monthly statement.

An Australian one-dollar coin is arranged for a photograph in Sydney, Australia, on Wednesday, April 17, 2013. Direct trading between the Australian dollar and yuan started on April 10. Photographer: Ian Waldie/Bloomberg

THE Australian dollar has drifted lower after getting a boost on Tuesday from the Reserve Bank's monthly statement.

At 0700 AEST on Wednesday, the local currency was trading at 92.65 US cents, down from 92.77 cents on Tuesday.

The currency bounced after the central bank maintained its neutral policy stance and made positive comments about the Australian economy in the statement accompanying its June interest rate decision.

The RBA left rates on hold at 2.5 per cent.

BK Asset Management managing director Boris Schlossberg said the currency rallied in relief that the RBA had maintained its neutral stance on interest rates, given recent disappointing economic data. He said the currency would now trade within its recent ranges until the release of US employment figures on Friday.

“The RBA stressed that rates will likely remain stable for a considerable period of time and that was the primary takeaway of the market which rallied Aussie in relief that the RBA maintained its neutral posture,” Mr Schlossberg said.

“The pair remains in a broad 92 to 93 US cent range and is likely to remain within those bounds until US non-farm payrolls.”