Commodity Dollars: Little Chance Of An RBA Hike This Year
Commodity currencies appreciated against the USD, with the Canadian dollar, earning the biggest gains. Today’s market moving economic release was the RBA minutes, which indicated that central bank Governor, Glenn Stevens, was content with the current monetary policy, and that the slowdown in the economy was needed.
In addition, the tone set by the minutes indicated that a rate cut would be highly unlikely, with speculation that the RBA would wait 12 months to assess the data before changing their monetary policy. Canada released their International Securities Transactions figure hit a 17-month high owing to steady confidence in the Canadian economy. Looking ahead, Australia’s Westpac Leading Index figures are expected to decline; while the Canadian equivalent is expected to pass the month unchanged as consumer spending and trade hold out. These low level indicators may encourage gains against an otherwise quiet dollar.