FXstreet.com (Barcelona) - The Aussie dollar is recovering some ground as of writing, after hitting fresh lows in the area below 1.0370. The intraday decline is almost exclusively associated to the dovish tone out of the RBA minutes earlier on in the Asian trading hours.
Jane Foley, Senior Currency Strategist at Rabobank, commented “last night the minutes of the RBA’s November 6 policy meeting suggested that a decision not to cut rates again this month was more finely balanced than has been thought. This raises the risk of more policy action if domestic data or that from China disappoints over the coming months. This news should therefore temper enthusiasm for the AUD… On the assumption that Chinese growth continues to show signs of stabilization we expect AUD/USD to edge modestly higher in the coming months”.
Jane Foley, Senior Currency Strategist at Rabobank, commented “last night the minutes of the RBA’s November 6 policy meeting suggested that a decision not to cut rates again this month was more finely balanced than has been thought. This raises the risk of more policy action if domestic data or that from China disappoints over the coming months. This news should therefore temper enthusiasm for the AUD… On the assumption that Chinese growth continues to show signs of stabilization we expect AUD/USD to edge modestly higher in the coming months”.
