AUDUSD is slowing down its decline in response to the RBA Meeting Minutes.
The Australian Dollar is taking a break from falling against the USD. The current quote for the instrument is 0.7389.
Earlier today, the Reserve Bank of Australia released its latest Meeting Minutes, which provided the Aussie with serious support. The Australian currency had been under significant pressure from the “greenback” recently and a short break must do good.
So, the document says that the RBA sees the inflation boost and expects it to continue. In the next few quarters, the CPI might exceed 3%. The energy price surge, as well as some other commodities, will boost inflation in the future. In the upcoming months, the Australian regulator is planning to collect more data on inflation and labour expenses.
The stability of the labour market confirms that the Australian economy is now pretty strong. This is the reason why the RBA might raise its benchmark interest rate sooner than expected.
This was a quite unexpected comment from the RBA, which recently had been acting like the global rate hikes had nothing to do with it. The AUD found some support here.
Now that the RBA policymakers agree that the financial climate in Australia remains quite favourable, market players are expecting the regulator to raise the rate in the second or third quarter.
If the Australian policymakers confirm their intentions to raise the rate, the Aussie might reverse.