Australian Dollar Holds Steady After RBA Minutes
The Australian Dollar (AUD) held steady against the US Dollar (USD) after the release of the Reserve Bank of Australia (RBA) November Meeting Minutes on Tuesday. The minutes showed that the RBA board remained cautious about the potential for inflation to continue rising, emphasizing the need for tight monetary policy.
The RBA Board members also indicated there was no “immediate need” to adjust the cash rate, although they left the door open for future changes, noting that nothing could be ruled out. Current forecasts are based on the technical assumption that the cash rate will remain unchanged until mid-2025.
The Australian Dollar gained support after hawkish remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock last week. Bullock emphasized that the cash rate is currently quite tight and will remain unchanged until the central bank is confident about the inflation outlook.
The US Dollar (USD) remains in a downward correction despite recent hawkish remarks from Federal Reserve (Fed) officials. However, the dollar’s decline may be limited as investors anticipate that the incoming Trump administration will prioritize tax cuts and higher tariffs. These measures could fuel inflation, potentially slowing the pace of Fed rate cuts.
Traders are now focused on the upcoming October U.S. Building Permits and Housing Starts data, due on Tuesday.
Source: FXStreet
