Australian central bank refrains from surprises – Commerzbank

As expected, the Australian central bank kept its key interest rate at 3.6% this morning, Commerzbank's FX analyst Michael Pfister notes.

Economic activity is slowly recovering

"The decision was unanimous, and the accompanying statement was relatively hawkish. It acknowledged that disinflation had recently stalled and that price pressures in the third quarter were likely to be stronger than previously anticipated."

"At the same time, policymakers continue to view the labor market as tight, emphasizing that economic activity is slowly recovering. This was positive for the Australian Dollar (AUD), as the expected suggestion of a further interest rate cut in November was not made."