FxWirePro: AUD/USD slightly lower after RBA minutes, finds strong support at 0.7435
The Reserve Bank of Australia released minutes of the June RBA meeting when interest rates were held unchanged at 1.75%. Aussie remained little changed after the RBA minutes release. The Board judged that unchanged polic…
The Reserve Bank of Australia released minutes of the June RBA meeting when interest rates were held unchanged at 1.75%. Aussie remained little changed after the RBA minutes release.
The Board judged that unchanged policy stance would be consistent with sustainable growth in the economy and inflation returning to target over time.
Low interest rates and weaker AUD since 2013 helped support above potential growth in Q1 and Q2 growth to be more moderate, but year-ended growth should stay slightly above potential.
Regarding the AUD, it said appreciation of the Aussie could complicate adjustment of economy by lowering the terms of trade.
Also, Australia house price index data released earlier today surprised on the downside weighing down on AUD/USD.
Data showed RBA House price Index for Q1 grew y/y, but fell to -0.2 % q/q.
On the daily charts, AUD/USD has broken trendline resistance and 50-DMA at 0.7433/35. RSI strength seen at 59 and daily Stochs are biased higher.
