Analysts at BBH explain that the Australian dollar is trading with a slightly softer bias, but mostly consolidating after rallying back through the past ceiling around $0.7700.
“The minutes of this month's RBA meeting failed to shed fresh light. However, news that house prices rose 4.1% in Q4 16, the fastest pace since mid-2015, is a timely reminder of why the RBA may be reluctant to ease despite soft inflation and softening labor market. The consolidative range seems to be around $0.7660 to $0.7745. The intraday technicals suggest upside potential in the North American session.”