AUD/USD bid despite an air of caution in RBA minutes

By FXStreet AUD/USD has caught a bid after the release of the RBA minutes.

AUD/USD has been trying to recover from the downside of the main recovery from below 0.6990 and lows of 0.6983 in the recent sell-off from 0.7115 on the dollar’s comeback. The key components of the RBA’s rhetoric remain with an optimistic view point, but there are downside risks that Stevens is well aware of and telling markets quite openly that they are only cautiously optimistic.

China is biggest concern to RBA

In the minutes, markets were looking for a bearish outlook between the cracks of the optimism and that is what we got today when it was stated that low inflation may offer scope to ease policy and risks remain anchored to China’s slowdown as being key in the outlook for terms of trade, commodity prices. AUD/USD however was able to tread on firmer ground, despite cautionary rhetoric, given that, overall, there is no urgency form the RBA to act while the local economy remains on track to grow under current monetary policy and the trade is focused on the now and short term.

AUD/USD levels

Technically, should the price continue to the upside, we are looking at 0.7180 and the …read more

Source:: FX Street