Aussie Steady As RBA Minutes Sound Positive

Published 10/20/2015, 02:42 AM
Updated 03/09/2019, 08:30 AM

Australian dollar is steady in range in Asian session as RBA meeting minutes suggested that the central bank is no rush to cut interest rate again. The minutes for October 6 meeting noted that the rebalancing in the economy "was being increasingly supported by the depreciation of the Australian dollar, which had led to a noticeable increase in net service exports over the past year." Also, "members noted that reductions in the cash rate earlier in the year continued to provide support to aggregate demand, particularly dwelling investment and household consumption." Regarding the closely watched housing markets, RBA noted that "there were signs that the response of the banks to supervisory measures implemented by APRA were helping to manage risks in the housing market."

In US, San Francisco Fed president John Williams said that he saw "the time to start raising rates in the near future". He forecast the US economy to grow 2-2.25% in 2016 and that would push unemployment to "well below" 5% and push inflation up towards 2%. And, he'd preferred to avoid that "high pressure economy" like that in the 90s and 2000s which was unsustainable. And, "as the economy gets stronger, has gotten stronger, we don’t really need all that accommodation going forward."

Looking ahead, Swiss will release trade balance, German will release PPI while Eurozone will release current account in European session. In US session, US will release housing starts and building permits while Canada will release wholesale sales.

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