In the minutes of July 2 RBA rate meetings, it’s noted that “the Board would continue to monitor developments in the labour market closely and adjust monetary policy if needed to support sustainable growth in the economy and the achievement of the inflation target over time.”
The conclusion indicates that RBA is still adopting an easing bias after cutting interest rate in both June and July meeting. However, the next move will come “if needed”, as the central will first “monitor developments” to see how the economy reacts to the prior rate cuts.
Australian Dollar firms up mildly after the release. Yet, AUD/JPY is staying below 76.28 resistance. Thus, there could be more consolidations before rebound from 73.93 resumes. Break of 76.28 is expected eventually as long as 75.13 support holds.
AUD/USD is still eyeing 0.7047 resistance for now. Break will resume the rebound from 0.6831. Though, rejection by 0.7047, followed by 0.6983 minor support, will turn bias to the downside for 0.6910 support.
