The Australian dollar was mildly higher against its US counterpart and the euro after the minutes released by the Reserve Bank of Australia showed that the central bank was not in a hurry to cut interest rates further.
The RBA said in the minutes of the September meeting that “recent data suggested that growth had been around estimates of potential growth over the first half of 2016” and “interest-sensitive sectors of the economy were being supported by accommodative monetary policy.” The overall tone of the notes was neutral, and the bank concluded:
Taking into account the recent data, and having eased monetary policy at its May and August meetings, the Board judged that the current stance of monetary policy was consistent with sustainable growth in the Australian economy and achieving the inflation target over time.
As for Tuesday’s data from Australia, the House Price Index rose 2.0% in the June quarter from the previous three months, missing analysts’ expectations but still being a better reading than the drop registered in the March quarter.
AUD/USD rose from 0.7533 to 0.7552 as of 16:11 GMT today, touching the high of 0.7564 intraday. EUR/AUD dropped from 1.4827 to 1.4785.
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