Forex: AUD/USD dips on dovish RBA

FXstreet.com (San Francisco) - The Australian dollar encountered noticeable selling pressure in the minutes before and after release of Friday's RBA quarterly Statement on Monetary Policy, cracking through support around 1.0395 (Oct25 high) and 1.0390 (200-hr EMA) to fall as low as 1.0376 (3-day low).

In the statement, the central bank said it has cut its 2013 GDP outlook, reduced GDP growth estimates for 2013, and said that it sees modest job growth and unemployment going a "little higher". AUD/USD has bounced slightly and last trades in the 1.0385 price zone.

Regarding the implications for RBA policy, John Noonan, analyst at IFR Markets says that this statement leaves the door open for a rate cut in December, but Ivan Delgado, editor and FX analyst at FXstreet.com suspects it is unlikely the RBA will cut until next year, as latest jobs report shows labour market still holding pretty well.

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