RBA meeting minutes drag on Australian dollar
Philip McHugh November 25th 2019 - < 1 minute read
As the Reserve Bank of Australia (RBA) showed greater signs of dovishness in its November meeting minutes the appeal of the Australian dollar diminished sharply.
Markets were discouraged to find just how close the RBA had come to cutting interest rates this month, dragging AUD exchange rates down in response.
Another negative Westpac leading index added to the bearishness of the Australian dollar, pointing towards another quarter of underwhelming economic activity.
A surprise deterioration in monthly credit card spending put pressure on the New Zealand dollar, meanwhile, as worries over the health of the New Zealand economy lingered.
October’s raft of New Zealand trade data could cast a fresh shadow over NZD exchange rates if the deficit widens as forecast.
The New Zealand dollar also looks vulnerable to any deterioration in the ANZ business confidence index, given its long run of negativity.
Support for the Australian dollar may pick up over the course of the week, however, if market risk appetite improves on bets of progress in the ongoing US-China trade negotiations.