When are the RBA minutes and how could they affect AUD/USD?

Ross J Burland FXStreet

RBA minutes overview

The minutes from the RBA Board’s April meeting are due at 11:30amSyd/9:30am Sing/HK, after the RBA, as widely expected, left the official cash rate at 1.50% at its latest meeting, unchanged yet again.

"Markets price negligible risk of a cash rate increase until November but suggested there will still be some interest in the commentary on e.g. the growth outlook," - analysts at Westpac.

How could the minutes affect AUD/USD?

AUD/USD showed its hand above the 0.7780 level in NY and technicals are leaning bullish going into the event. The RSI are biased higher as the Aussie looks to consolidate in bullish territory. There are also the Chinese data a little later to contend with, but positive sentiment for the Aussie economy could be en extra boost for the bulls making for an extension of the range towards 13t April highs of 0.7809. However, to the downside, the daily close below 76.4 Fibo at 0.7651 and 0.7643 could set off a test of the 0.75 handle.

Key notes:

AUD/USD grinding higher ahead of RBA Minutes, China GDP

RBA's Lowe: rates are likely to move up, not down

About the RBA 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.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.