ForexLive Asia FX news wrap: RBA minutes give AUD a mini (very minor) shake
Read full post at forexlive.com
Forex news for Asia trading on
Tuesday
15
June 2021
Major
forex rates traded in limited ranges during the session here with the
market looking ahead to the weeks’ major event, Wednesday’s
Federal Reserve Federal Open Market Committee meeting. For today
there was, however, some interest in the Reserve Bank of Australia
June meeting minutes. The June meeting was seen as something of a
‘placeholder’ ahead of the more important July meeting, when some
indication of policy wind-back is expected, but the minutes were
looked to for clues to July. There was not a lot in
the minutes, however one notable part was anecdotal evidence cited by
the RBA for firms using non-wage incentives to attract staff, and, if
that failed, firms slowing output, instead of paying higher
compensation to workers. If this is more than just anecdotal (the RBA
cite ‘liaison’, i.e. talking with their contacts) then it
presents a challenge for the Bank – policy makers are looking for
wage pressure to help drive inflation higher towards their target.
The Bank has said repeatedly it will hold policy easy until targets
are met and have even indicated an overshoot in inflation, to some
extent, is acceptable. Without wage pressure it cpould take longer to
hit RBA target.
The
Australian dollar dipped following the release of the minutes, losing
around 15 pips or so to lows circa 0.7695. NZD/USD lost a few points
alongside. Both have since retraced somewhat.
EUR/USD
is a few tics higher, as is cable, USD/CAD and USD/JPY. The ranges
for all of these have been small.
Bitcoin had another try at its US-time high of $41K and is circa $40.2 as I post.
AUD today:
