While the minutes from the RBA board’s August interest rate meeting didn’t sound any major alarm bells, it did not provide any outlook for interest rates, leaving the market to its interpretation
The RBA minutes release was anticipated to be a non-event and from the RBA, it appears pretty much business as usual.
With the lack of any substantive dovish forward guidance, the Australian Dollar should remain supported on some fronts.
Last Fridays weaker China “data dump” is getting downplayed with Mainland equity markets surging. Besides the prospects of more stimulus from the PBoc lending underlying support, the euphoria from mounting speculation that the Shenzhen -Hong Kong connect is set to launch is keeping local markets buoyant.
There’s little expectation this week’s FOMC will provide a lifeline for the USD, in fact, if there’s any takeaway from recent Fed Speak, it sounds more dovish than ever with the growing consensus of members not looking to hike US rates anytime soon
About Stephen Innes
Senior Currency Trader and Analyst, Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA . After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario. Follow on Twitter profile.