Early Tuesday morning in Asia, at 00:30 GMT, the Reserve Bank of Australia (RBA) will release the minutes of the latest monetary policy meeting held in November. The Australian central bank surprised markets by announcing a softer rate hike of 0.50% versus 0.75% in its latest meeting, raising expectations that the pivot is already established. The same could be confirmed from the latest comments of the RBA officials and make it important for the policy hawks to step back. As a result, today’s RBA Minutes will be closely observed for the details on the latest decision, which surprised traders and triggered talks of easy rate hikes moving forward. Also important inside the Minutes statement, especially for the AUDUSD pair traders, will be the economic outlook and the central bankers’ optimism towards overcoming the recession fears. Westpac is on the same line and said, the RBA’s November meeting minutes will provide more color around the Board’s 25bp rate hike decision, particularly the 25bp versus 50bp debate (if any?). However, the scope for fresh revelations is limited by what we have already seen since the last meeting, including speeches by Lowe and Bullock and the quarterly statement. How could the minutes affect AUDUSD? AUD/USD portrays the market’s indecision as it remains sidelined after pausing a bearish Doji candlestick at the two-month high the previous day. That said, the Aussie pair’s further upside hinges on how the RBA Minutes manage to keep the bulls happy even after promoting the 50 bps rate hike. That being said, talks over the economic transition and neutral rate, as well as surrounding employment conditions, will also be crucial to watch for short-term AUDUSD forecast ahead of this week’s Australia Wage Price Index for the third quarter (Q3), up for publishing on Wednesday. Technically, the bearish candlestick formation joins overbought RSI (14) and a failure to provide a daily closing beyond the 100-DMA, around 0.6700 by the press time, to keep AUDUSD sellers hopeful. However, the quote’s further downside needs validation from July’s low near 0.6680. Key Notes AUDUSD Forecast: Bulls happily adding at lower levels AUDUSD subdued after Federal Reserve official’s commentary, as RBA minutes loom About the RBA minutes The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, which is positive for the AUD. Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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When are the RBA minutes and how
By tbuzzed
