RBA Minutes weigh on the AUD - TDS

Annette Beacher, chief Asia-Pacific macro strategist at TD Securities, points out that the latest RBA Board Meeting Minutes suggest that while "there was not a strong case for a near-term adjustment in monetary policy" has been the Bank's near-term forward guidance for some time now, market participants looking for a cut on 7 May should take this sentence a little more seriously.

Key Quotes

“Some softening of the Board's perception of the labour market is what weighed on the AUD (-0.4% to $US0.714) where "Forward-looking indicators of labour demand had been mixed in recent months", a somewhat softer stance than the "strong" usually deployed to describe the labour market.”

“However, all measures of Australia's data surprise index have jumped higher in recent weeks, driven by auction clearance rates at 7m highs, exports, home loans, building approvals, retail sales and consumer confidence.”

“The RBA's base case has not changed, where "The central scenario was for further gradual progress to be made on both unemployment and inflation." Only when this is no longer the central case do they switch to an easing bias.”

“Thursday's employment (TD and mkt u-rate 5%) and next week's Q1 CPI are crucial hurdles for cementing or adjusting the RBA's central case ahead of the 9 May Statement on Monetary Policy.”

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 steady around 1.1240 in ultra-thin holiday's trading

The EUR/USD pair bounced some 20 pips from its weekly low during the Asian session, now mute around 1.1240 with most market's off today. Softer-than-expected US housing data passed unnoticed.

EUR/USD News

GBP/USD battling around 1.3000

The GBP/USD pair is heading nowhere fast after bottoming for the week at 1.2978, amid lack of progress in Brexit negotiations.  Encouraging UK data failed to trigger Pound's demand.

GBP/USD News

USD/JPY: On track to close in the middle of its 50-pip weekly range below 112

The USD/JPY pair remains frozen below the 112 handle in the NA session and there is no reason for it to make a meaningful move as investors are already enjoying the Easter holiday.

USD/JPY News

The Tale of the Prosperous Consumer-US Retail Sales

American consumers asserted the right to spend in a grand fashion in March boosting retail sales to the fastest expansion in 18 months as the booming job market put the shutdown marked holiday season to rest.

Read more

Gold Forecast: Eyes 8-month rising trendline after weakest weekly close since December

The troy ounce of the precious metal lost around $17 this week and now looks to record its lowest weekly close since the end of December near $1275.

Gold News

Majors

Cryptocurrencies

Signatures