XE Market Analysis: Europe – May 07, 2019

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The Australian Dollar rallied strongly after the RBA refrained from cutting interest rates, instead leaving the cash rate at 1.50% following its policy review today. There had been speculation for the central bank to cut by 25 bp following unexpectedly soft Q1 CPI data, though the proximity of the May-18 federal election looks to have stayed the central bank’s hand. AUD-USD rallied over 0.7% in pegging a high at 0.7048, which is the loftiest level seen since last Wednesday while putting in some distance from the four-month low seen yesterday at 0.6962.