Austarlian Dollar Dipped After RBA Minutes for July
RBA minutes release on 21st June regarding the monetary policy indicates that, as per Mr. Stevens statement, developments in Greece and China can still lead to further interest rate cuts in this year.
As per RBA minutes,“Information to be received over the period ahead on economic and financial conditions would continue to inform the Board’s assessment of the outlook and hence whether the current stance of policy remained appropriate to foster sustainable growth and inflation consistent with the target”.
After the minutes, a dip is seen in Australian dollar from 74.17 US cents to 73.30 US cents.
BK Asset Management managing director Kathy Lien said, “Wednesday’s inflation data and a speech by RBA governor Glenn Stevens had been the main factors impacting the dollar overnight”.
If we talk about consumer price index (CPI), it rose by 0.7% in June and an annual rate of 1.5%, that are below the RBA’s target zone of 2-3%.
Westpac strategist Imre Speizer said, “Eventual resumption of the strong US dollar trend should weigh on the Australian dollar during the next few months”.
News Source: https://au.finance.yahoo.com/news/lower-talk-further-rate-cut-214309549.html