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MACRO REPORT
The AUD/USD pair holds steady near the 0.6540 level after a sharp rally to nearly 0.6550 during Monday’s late European session. However, the pair is expected to remain on edge today, given the release of the Meeting Minutes from the RBA’s first meeting of the year.
Due at 11:30 AEDT, the minutes will likely acknowledge the moderation of price levels. Still, a line or two is expected to highlight the concerning level of inflation despite recent progress.
Although Aussie labour market figures disappointed markets last week, it is likely that several months of soft employment numbers will be required before the RBA considers a trimming rates.
Investors will also focus on the rate decision by the PBoC, announced following the RBA minutes. The reopening of Chinese markets after the Lunar New Year celebrations has boosted the appeal of the Aussie. Chinese equity markets opened up in the green and maintained those gains.
Thursday sees the Fed’s latest Meeting Minutes, which will draw plenty of attention as markets try to determine when the Fed will begin cutting rates.
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