Tonight at 9:30PM EST the RBA’s (Reserve Bank of Australia) Monetary Policy Meeting Minutes will be released to the public. Investors and economists will search the documents for any sign of further interest rate reduction.
As of August 6th, Australia and New Zealand are tied for the highest interest rate. That means Australia lost it’s long-held, highest interest rate title. While that statistic isn’t going to crash the AUD, it does significantly affirm the negative direction that the AUD has found itself going in. The AUD/USD was trading above 1.04 just 4 or 5 months ago. Closing last week, it found itself at below 0.92.
Policy Meeting Minutes are released 11 times per year, 2 weeks after the interest rate decision is announced. From today’s report, we will hopefully be able to see precisely why the RBA lowered their interest rate 25 basis points last week. Economists will also be investigating the reports hoping to find clues to whether more interest rates cuts are coming soon.
More AUD news to watch for this week; later this week, the Chinese Flash PMI figure will be released – the figure has been weak as of recently. China is Australia’s best friend when it comes to international trade, China’s PMI can have a great influence on the Australian Dollar’s value.
Until next time, for news updates and more fundamental analysis, you can follow me on Twitter. Follow the Winner’s Edge account, Casey’s twitter account, Nathan’s twitter account, and Tim’s twitter account too for Forex analysis, and trade ideas!
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