RBA minutes preview: ain’t no Pandora’s box

By FXStreet FXStreet (Guatemala) – AUD/USD has been in a cycle of recovery from the downtrend of 0.8150 and May 2015 highs. The recovery has been relatively strong, but almost a disguised conviction that may be about to reveal its true identity with a lack of substance.

We have run up from the 0.7150 territory to 0.7382 the high of 11th October on a consecutive 8-day run of gains. The Fed has been the driver as far back as one recalls in this market, and prices have shifted on forever changing sentiment as to the timings of lift off, while at the same time, the RBA has continued to stay true to their “wait-and-see” policy allowing the currency to fluctuate within a comfortable range for the Central Bank below the 0.76 handle, at the same time, taking comfort in the jobs market and that the effects from China are too soon to measure.

But of recent sessions, the chatter on the street points towards the possibility of a forced hand from the Bank to cut interest rates, perhaps as soon as November, due to continued pressures in the slow down of commodity prices, China and domestic implications from the high …read more

Source:: FX Street