Minutes of the Reserve Bank of Australia (RBA) meeting released on Tuesday have dragged the Aussie dollar down even more after it clarified that they do not see an interest rate hike coming before 2024.
On the other hand, continued closure measures in Sydney and Melbourne have made some economists see that the RBA will withdraw plans for reduced bond purchases (tapering) as announced at a policy meeting earlier this month.
Policymakers ’confidence in the economy in the past, has prompted the RBA to reduce the buying rate to A $ 4 billion a week until at least mid-November from the current level of A $ 5 billion.
However, since the announcement, 50% of the country’s population has had to undergo a curfew due to the very rapid spread of the Delta virus variant and driven a high increase in cases in the country.
If the RBA does not withdraw the reduction plan, but their views will probably be more cautious or emphasize the need for continued stimulus.
Meanwhile, the impact of the implementation of sanctions in Sydney, began to show from economic data readings published in today's Asian session where preliminary estimates of Australian retail sales were reported to fall 1.8% in July compared to expectations of a 0.4% decline.
This puts Aussie dollar trading under pressure at an eight -month low against the US dollar in today's Asian session.
