RBA minutes: Board prepared to ease policy further if needed (AUD lower)
Tuesday, 19 November 2019 07:55 WIB | FISCAL & MONETARY |RBA

The minutes from the RBA Board's 5th November meeting have been released which shows the RBA has an easing bias. AUD/USD is lower on the minutes, down -0.20% at the time of writing.

Bored prepared to ease policy further if needed and case could be made for a rate cut at November meeting.

Decided rates should be held steady "at this meeting".

Board recognised "negative effects" of lower rates on savers and confidence.

Rate cuts could have different impact on confidence than in the past.

Saw case to wait and asses impact of "substantial" stimulus already delivered.

Agreed extended period of low interest rates would be required to meet targets.

AUD at lower end of range of recent times.

Saw "moderate" Australian gdp growth for the September.

Considerable uncertainty over the outlook for household consumption.

Risks from home building sector tilted to downside, could delay recovery.

Liaison showed firms expected steady wages growth, very few saw a pick up.

Risk extended period of low wage growth could lower wage expectations, norms.

Board agreed a lift in wages growth would be a "welcome development".

Risks to global growth forecasts still tilted to downside.

There is some an element of surprise there considering that this is more dovish than what the central bank's Statement on Monetary Policy which went as follows: œThe Board was mindful that rates were already very low and that each further cut brings closer the point at which other policy options come into play.

We had already seen a very lengthy quarterly statement but markets that are already somewhat positioned with the potential of further rate cuts ahead are likely to be cheering such rhetoric as this. Prior to the minutes, "markets were pricing a 20% chance of easing at the Dec RBA meeting, and a terminal rate of 0.50% (RBA cash rate currently at 0.75%)," analysts at Westpac noted.

Technically, AUD/USD has been capped by the vicinity of the 200-day moving average at the start of this month. AUD/USD is respecting the descending trend line resistance at this juncture. To the downside, the 0.6730s guard prospects of a test to the YTD lows in the 0.6660s before the 0.65 handle. On the upside, a break of the 200-DMA opens risk to the 0.7020s which meets the 23.6% Fibonacci retracement level of the 2018 highs to July 2019 lows.

Source : FXstreet

RELATED NEWS

BoE Could Give "Prompt Response" to Signs of Lasting Weakness in UK Economy - Carney
Thursday, 9 January 2020 17:07 WIB

Bank of England Governor Mark Carney said on Thursday there could be a "relatively prompt response" from the central bank if it looked like weakness in the economy will persist. "With the relatively limited space to cut Bank Rate, if evidence builds that the weakness in activity could persist, risk...

Bank of England leaves policy rate unchanged at 0.75% in December as expected
Thursday, 19 December 2019 19:47 WIB

In a widely expected decision, the Bank of England's Monetary Policy Committee held the policy rate unchanged at 0.75% in December. The asset purchase facility remained steady at €435 billion as well. The GBP/USD pair fluctuated sharply with the initial reaction but struggled to make a decisive m...

Lagarde's ECB Keeps Policy Unchanged as Strategy Review Looms
Thursday, 12 December 2019 20:05 WIB

The European Central Bank kept monetary stimulus unchanged at President Christine Lagarde™s first policy meeting, shifting the focus to when she™ll announce her review of the institution™s strategy for safeguarding theeuro-zone economy. The ECB kept its deposit rate at a r...

Federal Reserve signals no rate hikes in 2020, just one in 2021
Thursday, 12 December 2019 02:20 WIB

The Federal Reserve left its benchmark interest rate unchanged and signaled no changes next year after its latest meeting to evaluate the economy. The Fed's so-called dot plot shows no rate hikes in 2020 and just one in 2021. The "current stance of monetary policy is appropriate to support sustaine...

Australia Holds Rate as RBA Waits for Past Cuts to Flow Through
Tuesday, 3 December 2019 10:56 WIB

Australia™s central bank kept interest rates unchanged as it waits for three cuts since June to flow through to areas of the economy beyond the property market. Reserve Bank Governor Philip Lowe and his board kept the cash rate at 0.75% Tuesday, in line with expectations of ec...

ANOTHER NEWS
S&P 500, Dow close at new records, notch best weekly gains since August
Saturday, 18 January 2020 04:19 WIB U.S. stocks closed at all-time highs Friday, marking the third-straight record close for the Dow and S&P 500, as investors cheered bullish economic data and continued to ride a wave of trade optimism. The Dow Jones Industrial Average rose 50...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.