The Reserve Bank of Australia sounds a bit more worried about the inflation, employment and the exchange rate as well. The meeting minutes from the July meeting raise the expectations for a cut in interest rates next month.
The meeting minutes showed that Glenn Stevens and his colleagues are waiting for upcoming inflation figures and will use them to “to make any adjustment to the stance of policy that may be appropriate”.
Regarding inflation, it is expected to remain low after it remained below average. Employment is a more mixed, with jobs growth and an ongoing shift away from the mining sector.
Inflation is published only once per quarter in Australia. The next report comes next week, and the next RBA decision comes in the following week.
Brexit is less of a factor for the less down under. The country has issues of its own but politics is not one of them at the moment. This comes in as Australia’s Prime Minister was officially sworn in after some uncertainty about elections results.
AUD/USD trades at 0.7517 after sliding from nearly 0.76 all the way to 0.75.The slide in the Aussie came hand in hand with a general strengthening of the US dollar and the Japanese yen, a “risk off” mood.
More: Elliott Wave Analysis: AUDUSD Trading In A Bearish Sequence; Sub-Wave 2 Is Pointing Lower
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