The Aussie $ is in retreat following a dovish set of RBA Minutes 19 July 2016
Our intrepid reporter Down Under had the story and analysis here where he said:
"I've bolded the comments above related to the bank awaiting more data. They always are, but I reckon the fact they highlighted "awaiting updated staff forecasts for August review" further emphasises that August is very much a 'live' meeting.
AUD has taken another leg lower on enhanced expectations of a rate cut.
-The inflation data from Australia on July 27 takes on even more significance in light of these minutes. We were always going to be watching this report for Q2 inflation but now the RBA has emphasised even more how important this report is. Further soft inflation will pretty much guarantee a cut in August (the meeting is August 2) ... but something that we'll have watch out for with the inflation report is that if inflation is showing signs of moving back higher the up move in the AUD could be fierce. "
Well the market agrees and has now sent AUDUSD down to session lows of 0.7490 from 0.7560 since the Minutes were published. Next line of bids at 0.7450 with stronger interest into 0.7450. Offers should be coming around 0.7520-25 now.
Rate cut coming? What do our AUD watchers think?
