The Reserve Bank of Australia (RBA) in the Asian session this morning (Tuesday) published the minutes for the August monetary policy meeting, which is the focus of investors.
Examining the minutes, the majority of central bank members agreed to further cut interest rates by continuing policy easing measures in an effort to support the economy.
At the meeting on August 12, the RBA lowered interest rates by 25 basis points to 3.60%, the lowest in more than 2 years.
Throughout 2024, the central bank maintained interest rates unchanged at 4.35% until the rate cut began in February this year.
After 3 interest rate cuts, the RBA signaled to continue further cuts towards the end of 2025.
However, the decision will depend on the latest data that will be presented in assessing the appropriate economic needs.
The Australian dollar currency did not show a significant reaction after the minutes were published, but still experienced a slow depreciation.
Meanwhile, the US dollar is seen gaining support to strengthen since yesterday's session, which could potentially add pressure to the Aussie dollar.
Investors will be focusing on the Australian inflation data report on Wednesday to assess further expectations for RBA monetary policy.
The forecast for Australia's annual inflation reading in July is up again to 2.3% after a low reading of 1.9% recorded the previous month.
