- AUD has shed 15 pips following the release of the minutes of the RBA's April meeting.
- The marked slowdown in the Aussie GDP contradicts the sustained labor market strength, according to the RBA minutes.
- The board expects inflation to remain muted for some time.
The Aussie dollar is slowly inching lower in response to the minutes of the Reserve Bank of Australia's April meeting, which said the marked slowdown in GDP growth is at odds with the improvement in the labor market.
While the board saw no strong case for a near-term rate move, it remained open to cut rates if inflation remains low and the jobless rate ticks higher, the minutes released soon before press time revealed. Further, the board members that inflation is likely to remain muted for some time despite the gradual progress on unemployment.
As of writing, the AUD/USD pair is trading at a session low of 0.7147 - down 17 pips from the pre-RBA minutes level of 0.7164.
The RBA's language on growth and inflation is AUD-negative. Indeed, the central bank sees further improvement in the labor market. However, many consider it as a lagging indicator. Also, so far, the labor market strength has failed to boost wage-price inflation.
That said, the downside in the AUD will likely be limited if the risk assets remain bid on the US-China trade optimism.
|Today last price||0.7164|
|Today Daily Change||-0.0010|
|Today Daily Change %||-0.14|
|Today daily open||0.7174|
|Previous Daily High||0.7183|
|Previous Daily Low||0.7163|
|Previous Weekly High||0.7193|
|Previous Weekly Low||0.7087|
|Previous Monthly High||0.7168|
|Previous Monthly Low||0.7002|
|Daily Fibonacci 38.2%||0.7171|
|Daily Fibonacci 61.8%||0.7175|
|Daily Pivot Point S1||0.7163|
|Daily Pivot Point S2||0.7153|
|Daily Pivot Point S3||0.7143|
|Daily Pivot Point R1||0.7183|
|Daily Pivot Point R2||0.7193|
|Daily Pivot Point R3||0.7203|
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.