Let’s take a look at Reserve Bank of Australia (RBA), which just after midnight shared protocols of the meeting, which took place in early December:
- Too strong AUD could complicate economic development
- Taking into account the latest data, a stable monetary policy should support GDP and inflation
- The data indicate that the final GDP Q3 2016 will be weaker than forecasts
- A clear uncertainty about condition of the labor market
- Inflation will remain at low levels for some time before returning to normal levels
- The housing market generally strengthens
- The decrease in mining investment should gradually lessen
- Global inflation outlook more balanced than in some time
The content does not appear to be rather nothing new, the general tone is dovish. Some investors had expected clear guidance on further cuts of interest rates in February 2017 but there was no such information.
Quotations of AUD/USD rather without a stronger response to protocols. So far we observe a slowdown in the depreciation – if the price drops could be corrected to the bearish area marked red then we get a chance to open short positions at more favorable levels:
