The Australian was not impacted greatly after the Reserve Bank of Australia released minutes of the May 7 policy meeting. Nothing that wasn’t already known was revealed, thereby letting the aussie remain steady near its recent lows after weakening from the rate cut to 2.75 percent earlier this month.
The minutes were slightly dovish as expected especially for the country’s large mining sector. There is hope for some growth in non-mining sectors of the economy though a big hindrance will be the slowing growth in China, which is Australia’s largest trading partner.
The strength of the Australian currency has hampered the nation’s exports especially of natural resources so it is hoped that the recent decline in the currency’s strength will help.
Some economists expect another rate cut by the RBA. Some believe the central bank will remain in the sidelines.
The recent decline in the value of Australian dollar removes some impetus for the RBA to cut rates in the near-term.
The AUDUSD rose to $0.9840 from $0.9750 earlier, further recovering from a 11-month trough of $0.9710 set last week.