Westpac’s prediction on Friday last that Australian interest rates are more likely to fall rather than rise will ensure that analysts are paying very close attention to the language and tone of today’s RBA monetary policy meeting minutes.
Inflation is not yet a problem here in Australia and economic activity, particularly in the retail sector, is slowing down markedly. If the unemployment rate rises back above 5% then we can forget about rate rises.
AUD/USD is in a broad consolidation between 1.05/1.08 and showing no signs at the moment of wanting to break out of this range.
