The Australian dollar dropped today after the release of minutes from the Reserve Bank of Australia, though the decline was rather limited. The Aussie even managed to gain on the Japanese yen.
The minutes of the latest RBA policy meeting confirmed that the central bank considers lowering interest rates further on the future gatherings:
The Board judged that it was appropriate to hold interest rates steady for the time being, while accepting that further easing of policy may be appropriate over the period ahead to foster sustainable growth in demand and inflation consistent with the target. The Board would continue to assess the case for such action at forthcoming meetings.
As for the currency’s performance, the minutes said:
Overall, members considered that the current setting of monetary policy was accommodative and providing support to the economy. They also acknowledged that a lower exchange rate would help achieve more balanced growth in the economy. Further depreciation of the Australian dollar was likely given the recent declines in key commodity prices.
The report together with the general negative market sentiment put pressure on the Aussie. Yet the Australian currency demonstrated a surprising resilience as its drop was nowhere near as big as yesterday’s one.
AUD/USD fell from 0.7723 to 0.7706 as of 19:35 GMT today. EUR/AUD was up from 1.3904 to 1.3927 following the drop to the daily low of 1.3808. At the same time, AUD/JPY ticked up from 92.03 to 92.18.
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