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RBA Minutes Stick To The ‘Steady As She Goes’ Script - AUD/USD
RBA opted to hold rates at the record low rate of 1% in August meeting and, whilst their statement left the door open for further easing, it was s very much a “steady as she goes” approach. Today’s minutes pretty much stick to this script, so the market reaction was muted. Ultimately the RBA want to see a lower unemployment rate accompany higher wages to fend off further easing on the domestic front. However, actions from other central banks (particularly the Fed) will also impact their policy timing, as to avoid getting left behind for a race to the bottom. RBNZ surprised markets with a 50bps cut just one day ... (full story)