• Arguments for June 5 cut were ‘finely balanced’
  • Jobless rate expected to move somewhat higher
  • Data suggests ‘continued moderate growth’
  • ‘Clear evidence’ of softening global conditions
  • Domestic data had not suggested a significant weakening in conditions compared to forecasts
  • Uncertainty about Europe and global growth likely to add to precautionary behaviour
  • Data from China suggested a further slowing in growth, easing there expected to be measured
  • full text

The ‘finely balanced’ comment suggests no rush to keep cutting rates but all the assessments were downcast so it leans slightly less dovish than expected. The market is torn on the upcoming RBA decision. I would lean toward a greater risk they hold.

AUD/USD climbed to 1.0140 then fell back to 1.0122.