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AUD/USD slips modestly after RBA minutes, July CPI eyed
Action Forex says the RBA minutes left September a live possibility by discussing potential pre-emptive tightening using monthly inflation data ahead of the next CPI release.
AUD/USD barely moved after minutes from the Reserve Bank of Australia’s Aug. 10 to 11 meeting, slipping only modestly from a recent 0.71790 high, according to Action Forex.
The outlet said the minutes largely confirmed an existing hawkish-hold debate. It reported that board members considered a 25 basis point hike but judged current policy, at 4.35%, “appeared sufficiently restrictive,” with officials also noting it was still early to gather more evidence.
Action Forex highlighted the minutes’ focus on whether the RBA could act before inflation risks are fully confirmed. Members discussed the possibility of mitigating upside risks by tightening monetary policy pre-emptively, and noted it was still “quite possible” that upside risks could crystallize and require further tightening.
With July CPI due to be released Wednesday, Action Forex added that it is the only monthly inflation report the RBA will receive before its Sept. 28 to 29 meeting, making the July print the more consequential test for how live the September hike debate remains.