The Australian dollar weakened today as the minutes of last Reserve Bank of Australia policy meeting showed that policy makers thought additional stimulus may be appropriate in the future.
The RBA released the minutes of June 4 meeting today. The central bank noted regarding the recent decline of the Aussie:
The exchange rate had also depreciated noticeably, though it remained at a high level considering the decline in export prices that had taken place over the past year and a half. It was possible that the exchange rate would depreciate further over time as the terms of trade declined, which would help to foster a rebalancing of growth in the economy.
As for the future policy, the bank explained:
The Board also judged that the inflation outlook as currently assessed might provide some scope for further easing, should that be required to support demand.
Such wording suggests that policy makers are ready to implement additional stimulating measures. This sapped the strength from the Australian currency.
AUD/USD fell from 0.9544 to 0.9511 as of 3:29 GMT today after rallying to 0.9573 earlier. EUR/AUD went up from 1.3999 to 1.4036, bouncing from the low of 1.3954. AUD/JPY ticked up from 90.19 to 90.71 before returning to the opening level.
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