RBA minutes: More likely next cash rate move is up rather than down

FXStreet Team FXStreet

The Reserve Bank of Australia (RBA) released the minutes of its May monetary policy meeting today, with the key highlights found below (courtesy Reuters).

More likely next cash rate move is up rather than down.

Board agreed there was not a strong case for near-term move in policy.

Given current circumstances, board agreed next move in rates likely to be up, rather than down.

Progress on unemployment and inflation likely to be only gradual.

Inflation to remain low for some time given retail competition, slow wage growth.

March quarter inflation data in-line with bank's expectations.

An appreciation in the A$ would slow expected acceleration in growth, inflation.

Wages expected to pick up gradually as leading indicators pointed to more job gains.

Still uncertainties remain on extent, speed of pick-up in wages and inflation.

Strength in employment has supported household consumption so far.

High household debt poses uncertainty for consumption outlook.

Consumption "relatively resilient" to slower growth in household income over recent years.

Conditions in global economy positive, china debt levels an important risk.

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.