Australian Dollar remains under pressure following the release of the RBA Meeting Minutes
The Australian Dollar (AUD) loses ground for the second successive day against the US Dollar (USD) on Tuesday following the release of the Reserve Bank of Australia’s (RBA) Meeting Minutes for its December monetary policy. Trading activity is expected to be subdued before the Christmas holiday.
The RBA’s Meeting Minutes indicated that the board had grown more confident about inflation since its previous meeting, though risks persisted. The board emphasized the need for monetary policy to remain "sufficiently restrictive" until there was greater certainty about inflation.
The RBA board also noted that if future data aligns with or falls below forecasts, it would bolster confidence in inflation and make it appropriate to start easing policy restrictions. However, stronger-than-expected data could require maintaining restrictive policy for a longer period.
Reserve Bank of Australia Governor Michele Bullock highlighted the continued strength of the labor market as a key reason the RBA has been slower than other nations to commence its monetary easing cycle.
Source: Fxtsreet
