AUD/USD: No response to dovish RBA minutes

  • RBA is ready to adjust policy if needed to support growth. 
  • Labor market to remain soft in the coming months, according to RBA. 
  • AUD/USD is seeing little action despite the dovish tone of RBA's minutes. 

AUD/USD has barely moved in the last few minutes even though the minutes of the Reserve Bank of Australia's (RBA) July meeting released at 01:30 GMT revealed that the policymakers are willing to adjust policy "if needed" to support growth and inflation.

More importantly, the minutes said that jobs growth will continue to moderate in the coming months and the spare capacity is likely to remain in the labor market for some time. Also, the board is of the opinion that further job market gains are needed for wages to rise materially, minutes showed. 

All-in-all, the RBA is going to monitor developments in the labour market closely and adjust monetary policy if needed to support sustainable growth in the economy and the achievement of the inflation target over time. Put simply, the central bank stands ready to cut rates for the third time this year. 

So far, however, the dovish tone of the minutes has failed to move the needle on the Aussie dollar, leaving the AUD/USD pair largely unchanged on the day at 0.7040.  The AUD's resilience could be considered a sign the market has already factored in the possibility of the RBA cutting rates by 25 basis points before the year-end. 

Pivot points

    1. R3 0.708
    2. R2 0.706
    3. R1 0.705
  1. PP 0.703
    1. S1 0.702
    2. S2 0.7
    3. S3 0.699


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Bulls struggle to keep the pair above 1.11 ahead of German PMI data

EUR/USD is on the defensive ahead of the release of all the all-important flash German and Eurozone Purchasing Managers' Index (PMI) readings for the month of August. A flag breakdown on the 4-hour chart could be seen if Germany's PMI prints below estimates.


GBP/USD: Resilient ahead of Johnson-Macron meet

GBP/USD remains modestly flat after reversing from 21-DMA. Upbeat Brexit signals from Germany, the latest negative headlines from France highlights Johnson-Macron meet.


USD/JPY: Weaker below 106.50, focus on T-yields ahead of Powell

USD/JPY trades weaker below the 106.50 level, tracking the negative S&P 500 futures and a cautious sentiment on the Asian equities, as attention shifts from the FOMC minutes to the Fed's Powell speech for fresh direction. 


Gold: Trapped in a symmetrical triangle

Gold is trapped in a narrowing price or a symmetrical triangle pattern, according to the 4-hour chart. The yellow metal rose to a six-year high of $1,353 per Oz on Aug. 13 and has charted lower highs and higher lows ever since.

Gold News

USD/CNH: Rallies, confirms falling channel breakout

Another wave of CNH selling could soon hit the market as the pair technical charts are reporting a bullish breakout. For instance, the pair has jumped 0.22% to levels above 7.08 today, confirming an upside break of the falling channel on the 4H chart.

Read more