Aussie remains unchanged despite dovish RBA minutes

AUD - Australian Dollar

The Australian Dollar opens relatively unchanged despite a dovish RBA minutes pushing the Aussie lower. Falling around 30 pips to 0.6830, the Aussie benefited later in the day with the Greenback sold off which saw some support for the Aussie. Despite the significant swings throughout Tuesday, the Aussie now finds itself open in familiar territory at 0.6868.

The RBA minutes drove direction on Tuesday as the market noticed some key changes to their normal rhetoric. The RBA suggested that they are waiting on an accumulation of evidence before deciding to cut rates again, a statement the market took to mean a lowering of the hurdle to another rate cut. With important employment statistics also due Thursday, the RBA may look to cut as early as October.

Wednesday looks to be a relatively light day on the domestic calendar with attentions firmly fixed on the United States for direction. Of key interest will be the FOMC statement from Fed Chair Powell and whether the Fed does decide to move forward with the 25BP cut the market expects.

Key Movers

Oil prices reversed course dramatically overnight as Saudi oil production looks to be fully restored by the end of the month. Brent crude is down more than 6% for the day to around 64.5USD per barrel after Reuters reported that the lost Saudi Arabia oil production is close to being 70% restored. With confidence somewhat restored in oil markets, the Greenback shed its post-attack gains to fall 0.4% on the US Dollar Index. The main beneficiaries of the falls were the Euro and Great British Pound which both rose around 0.6% to hit 1.1070 and 1.2510.

Expected Ranges

AUD/CAD: 0.9047 - 0.9132 ▲

AUD/EUR: 0.6161 - 0.6239 ▲

GBP/AUD: 1.8182 - 1.8239 ▲

AUD/NZD: 1.0748 - 1.0832 ▲

AUD/USD: 0.6832 - 0.6899 ▲