The Australian dollar fell against its US peer today after the Reserve Bank of Australia released the minutes of its last policy meeting. The drop was small, however, and the currency gained against the Japanese yen at the same time.
The RBA minutes were dovish and said:
Conditions in the business sector, as assessed in surveys, generally had remained below average, possibly in part because the exchange rate had remained high despite lower export prices and interest rates.
Policy makers also thought that “the inflation outlook provided scope to ease monetary policy further, should that be necessary to support demand”. All in all, the minutes were negative for the Aussie, but the currency did not look bothered too much by them, most likely because anticipation of additional stimulus was already priced in.
AUD/USD traded at 0.9792 as of 9:36 GMT today after falling from 0.9807 to 0.9748. AUD/JPY advanced from 100.28 to 100.53, while its daily high was at 100.92.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.
