Home Daily Commentaries AUD falls on the back of RBA meeting minutes

AUD falls on the back of RBA meeting minutes

Daily Currency Update

AUD - Australian DollarThe Aussie fell throughout yesterday’s trading session following the release of the minutes from the Reserve Bank Board's most recent meeting. The minutes highlight that the bank would be comfortable easing rates further in their next meeting coming up in February, where analysts predict they will reduce the cash rate from 0.75% to 0.50% In the future, we can expect to see some major movement with the release of the unemployment data tomorrow midday. This data is an important indicator of economic health where it is forecasted the unemployment rate will stay the same at 5.3%. In terms of technical levels, the Aussie continues to trade within the 0.6750 and 0.6890 range to open at 0.6847 against the USD this morning.

Key Movers

Brexit remains at the top of the headlines as fear is returning of a possible no-deal Brexit at the end of next year. Prime Minister Boris Johnson will use his new control of parliament to rule out any extension to the Brexit period beyond 2020, but European leaders have said a deadline of December 2020 would be too tight to negotiate a deal and the proposal could lead to a no-deal outcome. In the US, flash manufacturing data came back lower than expected at 52.5 compared to its forecasted rate of 52.6. Measuring a level of a diffusion index based on surveyed purchasing managers, the lower rate indicates a contraction in the economy. In terms of other major macroeconomic news, we should see some movement tomorrow night when the UK releases their monthly CPI data. Considered the UK’s most important inflation data, it is used as the central bank’s inflation target.

Expected Ranges

  • AUD/CAD: 0.8920 - 0.9095 ▼
  • AUD/EUR: 0.6060 - 0.6205 ▼
  • GBP/AUD: 1.8905 - 1.9420 ▲
  • AUD/NZD: 1.0340 - 1.0535 ▼
  • AUD/USD: 0.6780 - 0.6940 ▲