The Australian dollar strengthened after the minutes of the last Reserve Bank of Australia’s policy meeting have been released today. The minutes showed that the accommodative policy was positive for the economy, but additional stimulus remains probable.
The RBA said that “global economic conditions had been a little more positive and the downside risks had abated somewhat”, while the domestic data “had been mixed”. The bank noted the positive effect of the accommodative policy on the economy, but was worried about the high exchange rate of the nation’s currency. In conclusion the central bank stated that the inflation outlook “would afford scope to ease policy further”. The Australian dollar is rising for now, but the prospects for further monetary easing are not bullish for the currency.
AUD/USD rose from 1.0303 to 1.0337 as of 12:43 GMT today. AUD/NZD advanced from 1.2189 to 1.2240 and its daily high was at 1.2275.
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