RBA minutes sound upbeat tone – BBH

FXStreet (Delhi) – Research Team at BBH, note that the RBA minutes came out overnight, sounding somewhat upbeat which helped to underpin the strength in the Aussie today.

Key Quotes

“The bank noted that recent easing is supporting demand while the weakness in the currency is helping rebalance the economy away from mining activities. It also expects the economy to strengthen in the third quarter, driven by resource exports and housing investment.”

“Still, we think that a rate cut by the Reserve Bank of Australia came back into play following last week's news that one of the country's largest banks raised the rate of variable rate mortgages, citing tightening of financial conditions. The RBA could act to offset this.”