The Australian dollar gained today following the release of the latest policy meeting minutes from the Reserve Bank of Australia and the bounce of crude oil prices.
The RBA minutes mentioned the strong rally of the Australian dollar, especially against its US counterpart, that is weighing on inflation in Australia:
At the time of the meeting, the Australian dollar was around its highest level since mid 2015.
As a result, prospects for additional monetary easing remain:
Continued low inflation would provide scope to ease monetary policy further, should that be appropriate to lend support to demand.
While the possibility of more accommodative policy is not good for the currency, the Aussie managed to rally anyway as prices for crude oil recovered after yesterday’s losses.
AUD/USD rose from 0.7748 to 0.7796 as of 16:38 GMT today, and its daily high of 0.7820 was the highest since June 16. AUD/JPY was up from 84.32 to 85.07, reaching the high of 85.45.
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