Aussie Dollar Gains as Rate Cut Bets Find No Support in RBA Minutes
- December’s RBA Meeting Minutes Argue for a Period of RatesStability
- Australian Dollar Brifly Rallied After the Minutes Document was Released
- Rally Proves Short-Lived as Markets Continue to Bet on RBA Rate Cuts
The Australian Dollar briefly rose following the release of minutes from December’s RBA policy meeting. The document showed that the central bank continues to see a period of stability in interest rates as the most prudent course for the time being.
While the bank left rates unchanged in December and signalled no futher action is likely in the foreseeable future, priced-in expectations have pointed to the probability of at least one 25bps cut in the next 12 months. With that in mind, the Aussie’s slight bounce may have relected the absence of dovish rhetoric supporting market expectations for further easing.
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