There are just a couple of changes by the RBA to their statement today but it is making a big difference as they start to lean towards being more hawkish. I outlined the changes here already but I will recap them again for easier reading.
For one, they dropped the stance on being "patient" when viewing inflation developments before deciding on policy.
In March they said that:
"The Board is prepared to be patient as it monitors how the various factors affecting inflation in Australia evolve."
And here is the one in April:
"Over coming months, important additional evidence will be available to the Board on both inflation and the evolution of labour costs. The Board will assess this and other incoming information as its sets policy to support full employment in Australia and inflation outcomes consistent with the target."
It is a subtle change and they even mixed up the language on the cash rate guidance as well. In March they said that:
"The Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range."
And this is the latest change today:
"The Board has wanted to see actual evidence that inflation is sustainably within the 2 to 3 per cent target range before it increases interest rates."
Note how they took away the mention of not wanting to increase the cash rate and instead worded it as to what they want to see before increasing the cash rate. It's the small changes that are making the difference here.
And that has seen the aussie jump higher with AUD/USD now nearing 0.7600, its highest level since July last year.
That will offer some light resistance to the pair before a further jump may see a push towards 0.7800 next.