The Australian dollar is trading lower today after the Reserve Bank of Australia decided to keep interest rates on hold at their latest board meeting.

At 5.10pm (AEDT) the Aussie dollar was trading at US70.66c down from US71.12c in yesterday’s trade.

In his speech after the rate decision, Governor Glen Stevens noted that the labour market had improved but he would like to see a continuation of this trend,

On a negative note he mentioned that inflation was still a concern, with the number sitting at the bottom end of the central banks preferred range and left open the possibility to cut rates in the future if the situation didn’t improve.

“Over the period ahead, new information should allow the Board to judge whether the recent improvement in labour market conditions is continuing and whether the recent financial turbulence portends weaker global and domestic demand” Stevens said

“Continued low inflation may provide scope for easier policy, should that be appropriate to lend support to demand” he added.