The Australian dollar is trading in a tight range today after the release of the minutes meeting earlier today from the RBA while investors brace for tomorrows interest rate decision from the US Federal Reserve.
At 5.40pm (GMT) the Aussie dollar was trading at US75.49c up from US75.32c in yesterday’s close.
The RBA noted earlier this morning that overall growth in the Australian economy was at an acceptable level, and the target inflation range of between 2 and 3 percent would eventually come.
"Taking into account the recent data, and having eased monetary policy at its May and August meetings, the Board judged the current stance of monetary policy was consistent with sustainable growth in the Australian economy and achieving the inflation target over time," the Board said in its minutes.
After the statement, many predict that the central bank will have no need to follow up with further rate cuts from the 2 they have already delivered.
"The RBA has not changed its view since cutting rates to 1.5 per cent in August, which implies it sees little need to cut interest rates again," wrote Paul Dales, chief Australian economist at Capital Economics in a note to clients.
Interest rate decisions tomorrow from the Bank of Japan as well as the US Fed will be the key drivers of the Aussie dollar with some not ruling out a rate cut from the US central bank which will see the Aussie dollar spiral downwards.
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