RBA’s October meeting Minutes reiterate that inflation target of 2-3% will not be until 2024

The RBA’s October meeting Minutes have stated that the inflation target of 2-3% that is required before the central bank will lift the cash rate will not be until 2024. AUD/USD is giving back short term gains.

RBA Minutes

Delta variant of covid-19 had interrupted the recovery of the Australian economy

In the central scenario, the economy would return to growth in the December quarter and to its pre-delta path in the second half of 2022.

Economic recovery was likely to be slower than in late 2020/early 2021.

Members agreed that, while less accommodative monetary policy would, all else equal, see lower housing prices and credit growth, it would result in fewer jobs and lower wages growth.

AUD/USD technical analysis

Earlier, the bulls took out the resistance on the retest and now bears need another break of 0.7410/0.7400 of face stringer bullish momentum from trendline support: 

Further bullish AUD reading: AUD/NZD Price Analysis: Traders, don't get caught out!

About the Minutes

The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the AUD.