Australia's central bank cuts cash rate to record-low 1.0%

Australia cuts interest rates to new low of 1%

AUD/USD Rate Daily Chart Keep in mind, the AUD/USD rebound following the currency market flash-crash has been capped by the 200-Day SMA (0.7100), with the exchange rate marking another failed attempt to break/close above the moving average in April.

Two of the four big banks didn't pass on the full rate cut to customers in June, and product comparison site Canstar says they've only passed on half of the full rate cuts since 2011.

The resumption of trade talks between the U.S. and China and signs that home prices are beginning to stabilize may provide Lowe room to pause as he waits for his monetary stimulus to flow through the economy. "I don't think Australian depositors are ready for 0.05 per cent interest rates".

"We should all speak with confidence about our economy because it will secure further confidence", Frydenberg told the Coalition party room on Tuesday.

Australian Dollar investors are anxious about whether the Reserve Bank of Australia's (RBA) recent action will be enough to help Australia's economy, so will be looking for any signs of resilience in the major Australian data due for publication tomorrow.

With Parliament sitting on Tuesday for the first time since May elections, the government is giving priority to passing tax cuts worth 158 billion Australian dollars ($110 billion) over the next decade to boost economic activity.

A lift in spending by consumers would be vital to bring down both unemployment and underemployment, which have picked up over the past three months.

The bank wants Australia's jobless rate to fall below 5.2% so wages can rise faster. However, the uncertainty generated by the trade and technology disputes is affecting investment and means that the risks to the global economy are tilted to the downside'.

It said it would lower rates again "if needed", which suggested that an additional rate cut was less likely than previously thought, analysts said.

Millions of Australian workers will get a A$1080 (NZ$1131) boost in July from the Australian Taxation Office.

Still, investors were hesitant to keep buying the Australian Dollar back to its best levels.

It is the first back-to-back cut in interest rates since 2012 when the central bank cut rates by 0.50% in May and 0.25% in June of that year.

ANZ has since announced they will pass on the full cut, decreasing variable interest home loan rates by 0.25 per cent.

RBA Governor Philip Lowe signalled rates could go deeper into record territory. Along with Prime Minister Scott Morrison's center-right government's surprise re-election in May - on a platform of tax cuts - the short-term prospects look brighter.

"Consumption growth has been subdued, weighed down by a protracted period of low income growth and declining housing prices", Lowe said.

See live rates for the NZ-US $ below.

Westpac chief economist Bill Evans said home owners could expect that rate as soon as November.

"The board noted that it "will continue to monitor developments in the labour market closely and adjust monetary policy if needed to support sustainable growth in the economy".

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