While the minutes from the RBA board’s August interest rate meeting didn’t sound any major alarm bells, it did not provide any outlook for interest rates, leaving the market to its interpretation
The RBA minutes release was anticipated to be a non-event and from the RBA, it appears pretty much business as usual.
With the lack of any substantive dovish forward guidance, the Australian Dollar should remain supported on some fronts.
Last Fridays weaker China “data dump” is getting downplayed with Mainland equity markets surging. Besides the prospects of more stimulus from the PBoc lending underlying support, the euphoria from mounting speculation that the Shenzhen -Hong Kong connect is set to launch is keeping local markets buoyant.
There’s little expectation this week’s FOMC will provide a lifeline for the USD, in fact, if there’s any takeaway from recent Fed Speak, it sounds more dovish than ever with the growing consensus of members not looking to hike US rates anytime soon
Oil prices continue to support the commodity basket of currencies as anticipation of coordinated production freeze builds with Russian Energy Minister Novak jumping into the fray.