- A$ “noticeably” lower, but still high relative to export prices
- Saw growth a bit below trend continuing in near term
- Saw housing market improving, effect of low rates evident
- Saw increased appetite for borrowing in household sector
- Says overall business conditions remain somewhat subdued
- A$ also fell on may rate cut, concerns on china outlook
- Slower wages growth to help contain inflation as a$ drops
- Says A$ dropped as us$ strengthened, commodity prices fell
- Mining investment near peak, to remain at high level
- Potential Japan investor shift could affect A$, debt mkts
The AUD/USd has dropped back to the lower end of its US overnight range. The minutes suggest the AUD is still viewed by the RBA as overvalued and there is scope for more easing given the low inflation level.
As expected, there really isn’t much new in the minutes. No hint on a July rate cut.
