The Australian dollar remained firm after minutes of the last Reserve Bank of Australia policy meeting. The central bank said that it may cut interest rates further in the future, but is not going to do so immediately.
The RBA was not particularly optimistic about the developments in the Australian economy, according to the minutes of the meeting that has occurred on September 3. The central bank said that it would prefer to see the currency weaker to spur economic growth:
Some further decline in the exchange rate would be helpful in achieving such an outcome.
In conclusion, the bank mentioned probability of interest rate cuts:
Members agreed that the Bank should again neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them.
The dovish minutes did not hurt the Aussie. Perhaps, the currency kept its strength due to uncertainty about today’s policy decision of the Federal Reserve that weakened the US dollar and helped riskier currencies.
AUD/USD advanced from 0.9316 to 0.9352 on the yesterday’s trading session and was near 0.9342 as of 2:10 GMT on today’s session. AUD/JPY traded at 92.71 following the advance from 92.29 to 92.70. EUR/AUD dropped from 1.4307 to 1.4275 before trading at 1.4286.
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