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


The Reserve Bank of Australia (RBA) is up for releasing a minute statement of its August 07 monetary policy meeting at 01:30 GMT on Tuesday. The central bank met market-wide expectations of announcing no change to its benchmark cash rate during the meeting. However, the central bank’s quarterly monetary policy report holds its dovish stand, renewing fears of additional rate cuts during the year. As a result, investors will seek more details of the catalysts that led to such a decision in order to predict any such upcoming moves and predict near-term trade direction of the AUD/USD pair.

Ahead of the minutes, TD Securities spotted clues that investors will seek in the minutes:

Labour outcomes remain key to further RBA easing. Any indication the RBA sees other Central Banks as potentially easing further would be viewed as bond bullish.

On the other hand, Westpac turns down the importance of the meeting minutes as it says:

The steady hand on the cash rate at 1.0% was fully expected. The statement on the day said it “is reasonable to expect that an extended period of low interest rates will be required” and that the RBA will “ease monetary policy further if needed.” We have obviously heard a lot from the RBA since the meeting, in speeches and the quarterly statement.

How could the minutes affect AUD/USD?

While recent statistics at home and China have failed to lure bulls, traders will seek clues that can stop the central bank’s rate cut trajectory at least during the current year.

Technically, buyers will enter only if the pair manages to cross monthly tops surrounding 0.6822, which in turn opens the door for a fresh leg up to June low surrounding 0.6831 and then to May bottom near 0.6860. It should also be noted that an area between 0.6750/45 and 0.6735 offers strong downside support to the pair ahead of dragging it to sub-0.6700 region.

Key Notes

AUD/USD stays below 0.6800 ahead of RBA minutes

AUD/USD Analysis: bearish ahead of RBA Minutes

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.

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

GBP/USD off 7-month highs, still firmer as Tories hold the lead

GBP/USD retraces from the new seven-month highs of 1.3180 but remains strongly bid, as weekend polls have reaffirmed a solid lead for PM Johnson's Conservatives. Cable dropped on Friday amid upbeat US data.

GBP/USD News

EUR/USD steadying above 1.1050 amid upbeat German export data

EUR/USD is trading above 1.1050, attempting a recovery after Germany reported an increase in exports in October. EUR/USD dropped sharply on Friday amid upbeat US Non-Farm Payrolls and weak German industrial output. 

EUR/USD News

Cryptos: Market ready to launch, not knowing who will lead it

The market hesitates between Bitcoin and Ethereum to lead the next bullish run. Ethereum will suffer heavy losses if not in command. Bullish clarity may call for terminal motivation bearish jerks.

Read more

Gold bulls hold in there on geopolitical and trade risks, despite robust USD

Gold prices were under pressure at the start of the week as the US dollar seeks correction of the latest slide following a very healthy headline accumulative number in US jobs creation which included strong revisions.

Gold News

USD/JPY: Bears losing their grip as market attempts to bottom

USD/JPY is trading on the bid in the US session following a rise from 108.42 the low to a high of 108.66.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures