Australian Dollar Sold on Lackluster RBA Meeting Minutes
The Australian Dollar tracked lower against the spectrum of major currencies after the Reserve Bank of Australia published minutes from its March monetary policy meeting. The release didn’t seem to contain any overtly dovish commentary, with markets apparently responding to the lack of urgency in the central bank’s approach to removing stimulus. Indeed, the RBA argued that the prompt start to the tightening process in the aftermath of the 2008-09 global downturn allowed it “flexibility in the pace at which [normalization] proceeded” and reiterated that it was appropriate for interest rates to move “gradually” towards normal levels. Meanwhile, Glenn Stevens and company expressed concern that “fiscal problems in Europe, if not resolved satisfactorily, could result in renewed turmoil in markets and fresh weakness in the global economy, which could have implications for Australia.” A Credit Suisse gauge tracking priced-in policy expectations declined to show traders now see a 35 percent chance of another RBA rate hike in April, down from 42 percent before the meeting minutes crossed the wires.
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