The Reserve Bank of Australia released its meeting minutes from the most recent rate decision in November. They said that there is “considerable uncertainty” about wages picking up. Regarding inflation, they also see any “pass-through” as being delayed due to many factors.
What about the Aussie? They repeat that any further rise in the A$ would slow any potential pick up in the level of inflation and the economy in general.
They also note the housing market: it has eased in all major cities, with the exception of Melbourne. All in all, there are signs of dovishness in the publication. Such dovishness is not surprising amid the fall in CPI. In addition, the jobs report disappointed, but the publication came after the RBA meeting.
AUD/US did not react in an extravagant manner, but ti did challenge the lows. The pair fell to yet another “lowest since July” level at 0.7532, a few pips below the previous lows. It isn’t earth-shattering, but the pressure is certainly to the downside.
Here are how the recent moves look on the chart. Further support awaits at the round number of 0.75. Resistance is around 0.7640.
More: AUD: Breaking Out Of Ranges On Crosses; What’s Next? How To Position? Nomura