RBA minutes preview – what to expect in AUD/USD?

By FXStreet AUD/USD was supported on a better risk mood in the US afternoon, albeit led by an intra-session spike in gold prices. For the day ahead, we turn to the RBA minutes for April.

AUD/USD start of week price action

The Aussie brushed off the Chinese data misses from late Friday’s US close and rebounded from 0.7244 lows and back above the 200 dma at 0.7257. Industrial metals and oil were all performing and Wall Street finished modestly higher.

Looking at the correlations: “Consistent with the an ongoing shift in global sentiment to a more risk-averse environment (which has seen Chinese stocks decline last week), the correlation of AUD/USD and the Hang Seng stock index entered into the top 10 list of positive correlations,” explained analysts at Nomura.

RBA minutes to weigh on the Aussie?

For the day ahead in Asia, the RBA minutes for April and when rates were cut by 25bps will be released at 11:30am Syd/9:30am Sing/HK “These minutes ought to read with a clear a dovish bias,” argued analysts at Brown Brothers Harriman who added, “A rate cut at the next RBA meeting, on June 7, may be too soon to anticipate a follow-up rate cut, but the minutes …read more

Source:: FX Street