RBA July meeting minutes recap - upbeat comments help AUD higher

Author: Eamonn Sheridan | Category: Central Banks

The US political news was already helping currencies against the USD, EUR and yen big beneficiaries

And then it was almost as if the RBA came along and wanted to give the little Aussie battler a helping hand. 'Cause that is what the minutes have done.

More, from the full text:
  • All estimates of the neutral real interest rate for Australia suggested that monetary policy had been clearly expansionary for the preceding five years or so. It was also noted that a reduction in risk aversion and/or an increase in the potential growth rate could see the neutral real interest rate rise again.
  • the recent improvement in labour market data had been a positive development. Members noted that the strength of recent labour market data had removed some of the downside risk in the Bank's forecast of wage growth.
  • improvement in the world economy over the preceding months as a welcome development
And plenty more upbeatness (if that's a word) evident from the RBA. The Statement that accompanied the decision on July 4 was not so upbeat, the minutes are a bit of a surprise.

AUD is much higher, it had a great week last week, and its above those highs today

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