The Australian dollar jumped today after the Reserve Bank of Australia released the minutes of its last policy meeting, suggesting that the current level of interest rates is appropriate for the time being.
The minutes said:
Given the exchange rate adjustment that was occurring, and with the substantial degree of monetary stimulus already in place, members assessed the current stance of policy to be appropriate for the time being.
At the same time, the central bank noted that further cuts of borrowing costs are not impossible:
The Board also judged that the inflation outlook, although slightly higher because of the exchange rate depreciation, could still provide some scope for further easing, should that be required to support demand.
The Aussie managed to end yesterday’s session with gains even though it was struggling on news from China.
AUD/USD rose from 0.9096 to 0.9220 and AUD/JPY ticked up from 90.83 to 91.56 as of 11:26 GMT today.
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