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' stance on monetary policy and hints of future rate shifts.

Trade Desk Thoughts:

• Retail sales conditions have deteriorated rapidly.
• Output has been much weaker than expected.
• Major financial firms are expected to scale back their investment plans in light of market turmoil.
• There is a potential for a further slowing in employment growth as seen in other parts of the world.
• The less restrictive rate stance now seems more appropriate.
• Inflation is expected to fall during 2009.
• Expect global interest rates to fall more before the end of the year.

Forex Technical Reaction: The aussie has fallen through TheLFB neutral pivot point by 40 pips after the minutes were released and is currently trading at .6965.

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