RBA Minutes: No Hike for the AUD/USD
Rowan Crosby • 1 min read
The AUD/USD has had a busy 24 hours, although the bulk of the moves were thanks to a strong USD.
On Tuesday we’ve had the release of the RBA minutes, which is arguably the biggest event for the AUD/USD this week.
Going into the meeting, we have already had a bit of a preview of what to expect, thanks to the RBA’s statement on Monetary Policy, which was released shortly after the latest meeting.
The concerns then were still around weak wage growth and getting both inflation and jobs back on track.
The minutes seem to reiterate the same type of themes. The main takeaway that I can see is that the RBA is stating that there isn’t a strong case for a near-term rate hike. Which isn’t something we didn’t already know.
Some more points:
- Next move to be up
- Waiting on unemployment and inflation
- Lower AUD helping
The AUD/USD has been headed towards major support turned resistance at 0.7350. If you recall, this was a big level that took a fair bit of time to break.
We are also still in our downward channel that is providing some further resistance.
Regardless of today’s minutes, the story of the AUD/USD appears to continue to be dictated by the USD at the moment.
I think we have a little bit more downside to go in the Greenback, but I fully expect to see a rebound.
As such I would be looking to sell the AUD/USD on a retrace to the 0.7350 level.