When are the RBA minutes and how could they affect AUD/USD?
|RBA minutes overview
The minutes from the RBA Board’s April meeting are due at 11:30amSyd/9:30am Sing/HK, after the RBA, as widely expected, left the official cash rate at 1.50% at its latest meeting, unchanged yet again.
"Markets price negligible risk of a cash rate increase until November but suggested there will still be some interest in the commentary on e.g. the growth outlook," - analysts at Westpac.
How could the minutes affect AUD/USD?
AUD/USD showed its hand above the 0.7780 level in NY and technicals are leaning bullish going into the event. The RSI are biased higher as the Aussie looks to consolidate in bullish territory. There are also the Chinese data a little later to contend with, but positive sentiment for the Aussie economy could be en extra boost for the bulls making for an extension of the range towards 13t April highs of 0.7809. However, to the downside, the daily close below 76.4 Fibo at 0.7651 and 0.7643 could set off a test of the 0.75 handle.
Key notes:
AUD/USD grinding higher ahead of RBA Minutes, China GDP
RBA's Lowe: rates are likely to move up, not down
About the RBA minutes
The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the AUD.
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