AUD/USD Gains Ground After The Release Of RBA Minutes

Key Insights

• AUD/USD is moving higher after the release of the RBA minutes. 
• NZD/USD is mostly flat as traders prepare for the upcoming RBNZ Interest Rate Decision. 
• USD/JPY is trading near 133.50 as traders wait for the economic reports from the U.S. 

There are no big moves this morning, and the U.S. dollar is mostly flat against a broad basket of currencies. Traders are waiting for the U.S. economic reports, which may move markets today.

AUD/USD

Today, AUD/USD traders focused on RBA minutes. The minutes indicated that RBA members expected that inflation would peak later in 2022 and then decline back to the top of the 2 – 3% range by the end of 2024.

Members noted that they expected further declines in the unemployment rate in the upcoming months. The economy remained strong, and RBA board projected that it would make additional rate hikes.

However, RBA noted that these rate hikes were not on a pre-set path. In general, the minutes were not too hawkish, although they may provide some support to AUD/USD.

AUD/USD has started to rebound after yesterday’s sell-off, driven by the technical rebound in commodity markets. In case this rebound continues, AUD/USD will get more support.

NZD/USD

Meanwhile, NZD/USD is mostly flat after yesterday’s pullback. Traders prepare for the RBNZ Interest Rate Decision, which will be released tomorrow.

Analysts expect that RBNZ will raise the rate from 2.5% to 3%. As usual, traders will pay special attention to RBNZ press conference.

Most likely, NZD/USD will stay choppy ahead of the RBNZ decision. Currently, NZD/USD has stabilized near the support level at 0.6365, and it will need additional catalysts to settle below this level.

USD/JPY

USD/JPY is trading near 133.50 as traders wait for additional catalysts. Today, the dynamics of USD/JPY will depend on traders’ reaction to the U.S. economic reports.

Analysts expect that Building Permits declined by 1.2% month-over-month in July, while Housing Starts increased by 1%. Industrial Production is projected to increase by 0.3% month-over-month. Manufacturing Production is expected to grow by 0.2%.

Traders will also keep an eye on general market sentiment as rising demand for safe-haven assets may provide more support to the American currency and push USD/JPY towards the 134.00 level.

For a look at all of today’s economic events, check out our economic calendar.