Aussie Falls as RBA Minutes Don’t Exclude Rates Cut

Aussie Falls as RBA Minutes Don’t Exclude Rates Cut

The Australian dollar fell today after the minutes of the policy monetary meeting weren’t been able to calm worries about possible interest rates cut by the Reserve Bank of Australia.
The policy makers were concerned about “the acute uncertainty in global financial markets over the recent period”. The resulting decision was:

Having considered all these factors, members judged that it was prudent to leave the setting of monetary policy steady at this meeting, and to continue to assess the outlook for growth and inflation at future meetings.

Market analysts pointed out that the RBA changed wording about the maintaining rates from “appropriate” (as was stated in the couple of the previous minutes) to ”prudent”, indicating that the Bank isn’t sure that keeping the rates unchanged is still appropriate.
AUD/USD fell from 1.0505 to 1.0421, while AUD/JPY dropped from 80.70 to 79.89 as of 12:30 GMT.

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