FXStreet (Edinburgh) – Lee Hardman, Currency Analyst at BTMU, reviewed the recently published RBA minutes.
Key Quotes
“In the minutes the RBA acknowledged that “economic activity had generally been more positive over recent months”, and that a “further depreciation of the Australian dollar was expected to impart stimulus to the economy through stronger net exports”.
“The RBA expects there to be a “sizeable market impact notwithstanding how well telegraphed the change in policy had been” when the Fed begins to raise interest rates”.
“Adding that “it was likely that financial market volatility would increase and the US dollar would appreciate further, including against the Australian dollar”.
“The RBA was also more positive on the growth outlook for China judging that the risks to growth have “have receded somewhat” although the government’s response to recent volatility in the Chinese equity market had clouded the medium-term economic outlook”.
“The RBA’s view on the recent renminbi devaluation is not yet known”.
(Market News Provided by FXstreet)