The Australian dollar gained against the majority of its most-traded counterparts today, with the exception of the US dollar. That is despite the Reserve Bank of Australia released policy minutes, which suggested that the central bank maintained easing bias.
The RBA released minutes of the monetary policy meeting on July 2, when the central bank decided to lower interest rates. The notes explained the decision:
Members judged that a further reduction in the level of interest rates would support the necessary growth in employment and incomes, and promote stronger overall economic conditions, which would in turn support a gradual increase in underlying inflation. Members also judged that the extent of spare capacity in the economy, and the likely pace at which it would be absorbed, meant that a decline in interest rates was unlikely to encourage an unwelcome material pick-up in borrowing by households that would add to medium-term risks in the economy. Members recognised the uneven effect of lower interest rates on different households.
Furthermore, the minutes suggested that the bank is ready to lower rates further if need be:
The Board would continue to monitor developments in the labour market closely and adjust monetary policy if needed to support sustainable growth in the economy and the achievement of the inflation target over time.
Yet the Aussie remained largely unbothered by the release.
AUD/USD slipped from 0.7038 to 0.7032 as of 13:40 GMT today. At the same time, EUR/AUD declined from 1.5989 to 1.5954, trading near the lowest level since May 8.
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