FXStreet (Bali) – Paul Bloxham, Chief Economist, Australia & New
Zealand, at HSBC, notes that today’s minutes from the RBA clearly suggest that the central bank is getting more comfortable with its current policy setting and the recent behaviour of the AUD.
Key Quotes
“In our view, this reflects three key factors: (1) the domestic labour market is improving, (2) the AUD has fallen to more comfortable levels, and, (3) the RBA seems to expect that the Federal Reserve may be lifting its policy rate sooner rather than later, which they expect could exert further downward pressure on the AUD.”
“The RBA also appears to be less worried about the weak near term outlook for non-mining business investment, as they acknowledge that a shift from mining to services-led growth is likely to be less capital-intensive but is creating jobs. We see the RBA on hold in coming quarters.”
Zealand, at HSBC, notes that today’s minutes from the RBA clearly suggest that the central bank is getting more comfortable with its current policy setting and the recent behaviour of the AUD.
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