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Australian dollar stronger on minutes.
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Published on 21.06.2016 21:04

The Australian dollar is trading higher today after the latest minutes meeting from the Reserve Bank of Australia where they gave few signals on any further cuts in interest rates.

At 6.24pm (GMT) the Aussie dollar was trading at US74.62c up from US74.57c in yesterday’s trading.

The latest minutes from the RBA came as a shock to many as they were expecting a more dovish tone following on from a previous statement where the central bank noted its concerns over the economy.

In an about turn the RBA noted that overall it was happy with the economy, although inflation was a bit of a worry and they expected it to remain low for some time.

"The Australian dollar outperformed the majors in the session with the currency supported by a largely neutral tone to the June RBA Board meeting minutes," JP Morgan's team noted.

The RBA did seem to leave the door slightly open for a rate cut by noting that any further strength in the local currency may derail the transition away from the mining boom which has been underway for some time.

“Members noted that an appreciation of the exchange rate could complicate the adjustment of the economy to the lower terms of trade,” the RBA said in the June board meeting minutes.

Also supporting the Aussie was round of polls released in the last few days that shows the vote for Britain to remain in the European Union gaining ground after many started to predict the country would in fact break ties with the EU.


Andrew Masters

Analyst

The power of leverage is the power of Forex.
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