RBA Minutes Hurt Aussie
The Australian dollar backed off today as the minutes of the central bank’s policy meeting indicated that the RBA is ready to implement additional monetary easing. The currency remained weak even as stocks and commodities rallied.
At this meeting, the information on labour costs and softening labour market conditions suggested that the inflation outlook still afforded the Board some scope to provide additional support to demand. Further confirmation that the peak in resource sector investment was near, and that the short-term outlook for non-resource investment remained subdued, indicated that there was a case for the Board to provide that support.
The Standard & Poor’s GSCI Index of 24 commodities rose 0.5 percent, while the S&P 500 Index climbed as much as 1.2 percent yesterday. Yet the Aussie did not avoid losses even in such positive trading environment.
AUD/USD dropped from 1.0532 to 1.0513 and AUD/JPY went down from 88.67 to 88.55 as of 3:06 GMT today. EUR/AUD advanced from 1.2554 to 1.2598.
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Earlier News About the Australian Dollar:
- Aussie Rises Even as Consumer Sentiment Declines (2012-12-12)
- Australian Dollar Recovers After Losing Ground on Business Confidence (2012-12-11)
- Aussie Soft on Australian Home Loans & China's Trade Data (2012-12-10)
- Australian Dollar Posts Weekly Gain Despite Mixed News (2012-12-08)
- Employment Data Pushes Aussie to Highest in Several Months (2012-12-06)