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At 9:30 am Beijing time on Tuesday morning in Asia, the Reserve Bank of Australia announced the minutes of the latest monetary policy meeting held in June.
The Reserve Bank of Australia surprised markets for the second time in a row by announcing a 25 basis point rate hike earlier this month, after pausing its trajectory of 10 rate hikes in April. However, policy makers have been trying to convince the market that they can defend a hawkish rate hike cycle, but investors are concerned about a shift in RBA policy, making the intraday RBA meeting minutes even more critical for AUD/USD investors .
In addition to focusing on the catalysts that helped the RBA surprise the market at its last monetary policy meeting, the outlook for policy pivots and the benefits of Chinese stimulus will also be AUD/USD as traders look at the minutes of today’s RBA monetary policy meeting important things to pay attention to.
In addition to focusing on catalysts that helped surprise the market at the RBA’s last monetary policy meeting, the prospect of the RBA’s policy shift and the positive news that China will introduce stimulus policies will also be among the key factors for investors in the minutes of the RBA’s monetary policy meeting. Important content to focus on.
How will the RBA meeting minutes affect AUD/USD?
AUD/USD rebounded to 0.6855 in early Asian trade on Tuesday, consolidating at its highest level in four months, snapping a two-day losing streak. During this period, the fluctuation of AUD/USD reflects the expectation that the Reserve Bank of Australia will release hawks, and the People’s Bank of China will introduce measures to stimulate the economy.
In other words, the RBA surprised the market with two consecutive interest rate hikes. Aussie bulls are therefore looking for more hawkish cues that the Reserve Bank of Australia will raise interest rates in July. It should be noted that the latest round of U.S.-China talks did not present major geopolitical risks, which is the basis for the AUD/USD pair to consolidate ahead of key events. At the same time, the market expects China to take more stimulus measures to promote economic recovery.
In view of the recent differences in the policies of the Reserve Bank of Australia and the Federal Reserve, the minutes of the Reserve Bank of Australia meeting will be closely watched in order to understand the future policy trends of the Reserve Bank of Australia. If the RBA maintains its recent hawkish moves and hints at more rate hikes, there could be further upside for AUD/USD prices.
From a technical point of view, AUD/USD denied the three-week bullish channel and fell below the channel’s support line around 0.6885 at the latest, keeping bears looking forward to it.
AUD/USD bears take respite around mid-0.6800, RBA minutes and PBOC rate policy in focus
About the RBA Minutes
The minutes of the RBA meeting are released two weeks after the RBA rate decision. The minutes provide a comprehensive account of the policy discussions, including differences of opinion. The RBA minutes also record the votes of each member of the committee. Generally speaking, if the Reserve Bank of Australia is hawkish on the outlook for economic inflation, the market will think that the chances of the Reserve Bank of Australia raising interest rates will increase, and the Australian dollar will be bullish.
