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The RBA September minutes revealed board members had concerns there were significant tensions around global trade policy that represent risk to global outlooks.
“The direction of international trade policy in the US continued to be a source of uncertainty for the outlook of the world economy.” September minuets revealed.
This comes as US President Donald Trump Monday announced tariffs on another $200 billion worth of Chinese imports. Chinese Vice Premier Liu He is set to convene a meeting in Beijing on Tuesday to discuss the Chinese government's response to the decision.
The AUD/USD traded down to 0.7144 upon the tariff news.
Rates continue hold
The RBA September meeting also discussed the need for domestic monetary policy to remain steady for sone time to come, expecting unemployment to decline gradually toward 5% and wage growth to increase gradually as spare capacity in the labour market is absorbed.
“The modest depreciation in the Australia dollar was helpful for domestic economic growth.” The RBA Said.
GDP growth is likely to remain above potential, while inflation is “likely to increase over time” the board found.
The board reiterated there’s no strong case presented for near term changes to monetary policy.
New data shows Australian property price fall
Meanwhile, new figures on property prices from the Australian Bureau of Statics reveal residential property prices fell 0.7% in the June quarter.
Sydney recorded the fourth consecutive quarter of falling property prices, dropping 1.2% while Melbourne prices fell 0.8%.
ABS Chief Economist Bruce Hockman said the initial slowdown was bought on by regulatory changes and tightening in supply of credit to investors.
“A drop-in investor demand over recent months appears to be adding to the slowing in housing credit growth.”
Property prices fell 3.9 % annually in Sydney, making it the largest price fall since 2009.
The price index for residential properties also fell 0.7% in the June quarter, with Sydney recording the worst annual fall in residential property prices at 3.9%.
Controversy remains over Australia's housing market data, with experts airing conflicting views on the severity of falling prices.
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