Australia Monetary Policy Meeting Minutes

Release Explanation: Changes in rates affect interest rates in consumer loans, mortgages, and bond rates. Since short term interest rates essentially reflect the return on holding a currency, rate decisions usually affect the exchange rate of the Australian Dollar. Increases in rates, or even expectations for increases, tend to cause the Australian Dollar to appreciate, while rate decreases cause the currency to depreciate. This is a detailed record of the recent interest rate meeting. This release is very important for traders to discern the RBA's stance on monetary policy and hints of future rate shifts.

Trade Desk Thoughts: The following reasons were given for the RBA's decision to lower interest rates by 100 basis points.

• Worldwide economic powerhouses saw rapid declines in gross domestic product.
• Financial sector strains plagued global credit markets.
• Near-term economic outlook remained very weak as economic growth is expected to be revised downward.
• Members noted that the Australian financial system remained strong.
• Monetary policy transmission process was working in that borrowers (particularly households) were able to receive lower rates.
• Australian economy remains stronger than many others.
• Monetary and fiscal stimulus is having an expansionary effect.

Forex Technical Reaction: The aussie has found support at the neutral pivot point in the .6585 area but has not moved much from this release

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