Australia Rate Cut Lifts Shares Down Under
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The Reserve Bank of Australia cut its benchmark interest rate by a quarter percentage point to 3.5 percent. Data compiled by Bloomberg showed a 40 percent chance of a larger cut to 3.25 percent.
In statements, Governor Glenn Stevens said "Overall labour market conditions firmed a little, notwithstanding job shedding in some industries, and the rate of unemployment remains low. Nonetheless, both households and businesses continue to exhibit a degree of precautionary behaviour, which may continue in the near term."
iShares MSCI Australia Index (NYSE: EWA), an ETF that tracks the Australian equity market, is trading 0.7 percent higher early on Tuesday. CurrencyShares Australian Dollar Trust (NYSE: FXA), an ETF that tracks the exchange rate between the Australian dollar relative to the U.S. dollar, is also trading higher today.
In statements, Governor Glenn Stevens said "Overall labour market conditions firmed a little, notwithstanding job shedding in some industries, and the rate of unemployment remains low. Nonetheless, both households and businesses continue to exhibit a degree of precautionary behaviour, which may continue in the near term."
iShares MSCI Australia Index (NYSE: EWA), an ETF that tracks the Australian equity market, is trading 0.7 percent higher early on Tuesday. CurrencyShares Australian Dollar Trust (NYSE: FXA), an ETF that tracks the exchange rate between the Australian dollar relative to the U.S. dollar, is also trading higher today.
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