AUD/USD testing above 0.7300 after the RBA minutes wish for a lower AUD
The Reserve Bank of Australia has been lamenting the strength of the Australian dollar for a couple of months now.
The Bank acknowledges AUD is not far from fundamentals (what they judge as fundamentals anyway) and also that there is nothing much in the way of intervention the Bank can do about the rising AUD. They just wish it was lower! (they say a lower AUD would support economic recovery).
The Bank, yet again, have painted an optimistic view, saying the economy is recovering better than they thought it would. They say the renewed lockdown in one state will weigh, but given they say the rest of Australia is recovering faster than they thought it would then the market will discount their view on Victoria. The RBA is consistently on the optimistic side, have been for years, even as they persistently miss their target on inflation and job growth slowed. FWIW I think this optimism bias is something the Board may wish to address.
Since the Sep meeting minutes AUD/USD has rallied back to its overnight high (and above):