AUD/USD rises to a session high of 0.7223
The RBA is portraying the picture as a glass half full, rather than a glass half empty. The overall language of the statement remains the same and they are leaning on the labour market to do the heavy lifting in terms of stirring optimism. But the key elements remain unchanged as mentioned earlier - wages, inflation, household consumption.
Those three are the key components for the RBA to proceed with hiking rates and they are still nowhere near to where they should be for the central bank to do so.
The market positioned itself for a more dovish tilt by the RBA but it didn't come. This is as much of a status quo you can get and that's why we're seeing a mild rebound in the aussie at the moment.
The bit size surprise is that the central bank is still showing little concern for the slowing housing market and they seemed to have just brushed aside rising mortgage rates from lenders. The lack of concern is a positive thing as it means the situation isn't as bad as initially thought but they have to be careful on not crossing over the line to ignorance.
Only time will tell if the lack of concern will be justified. But for now, this is as much of a non-event as you will get. The aussie is a little stronger but watch out for large expiries (rolling off tomorrow) at 0.7225 to cap gains for the time being.
