The Australian dollar is once again weaker following the RBA's latest minutes. While the document contained few surprises, the RBA continues to emphasize high household debt and weak inflation as headwinds to potential rate hikes. Specifically, the RBA pointed to "considerable uncertainty" as to how wage growth will help the inflation outlook. The Bank also pointed out that strength in AUD should slow both growth and inflation. Our outlook on the currency remains bearish.
AUD/USD is currently down and trading just above 0.7530. Looking at EUR/AUD, the pair is up and currently just above 1.5580. The GBP/AUD is higher and the exchange rate is currently above 1.780.
This is a very light week for economic data releases relating to the Australian dollar. The RBA’s meeting minutes suggested "considerable uncertainty" regarding future inflation and cautioned against strength in the currency. Last week, wage growth and employment changes missed expectations.