After cutting rates in February the Reserve Bank of Australia kept its rates steady at 2.25% although the fall of commodity prices weighs on the Australian economy - the price of iron ore, accounting for 20% of Australia's exports, set a new 10-year low last week. In China, the country's biggest trade partner, the economy is slowing. The RBA wants to assess the effects of the last cut before taking further measures but another rate-cut is likely to happen. In a statement the RBA noted that even lower exchange rates will be needed in order to achieve the targeted economic growth. The bank said that domestic demand is quite weak.

The Australian dollar rallied after the announcement, currently trading at USD0.7674.