Aussie stronger ahead of RBA minutes

The Australia dollar is stronger versus the US dollar ahead of tomorrow’s Reserve Bank of Australia minutes.

Dealers are not expecting a dovish set of comments from the Australian central bank overnight, and with interest rates now at an all-time low of 2.5%, traders do not anticipate additional rate cuts in the months to come.

The Australian economy is adjusting to life after the mining boom, and a series of interest-rate cuts have been made over the past year. The RBA is probably waiting for previous rate cuts to trickle down through the economy.

Weaker-than-expected trade balance figures from China had earlier had a negative impact on the Australian dollar. Beijing announced a budget surplus of $15.2 billion in September, with analysts expecting a surplus of $26.25 billion. The report showed that Chinese exports are down but domestic demand is on the rise.

China growth figures are released on Friday, and if the numbers are strong we could see the Australian dollar move towards the $0.95 mark.

Spot FX AUD/USD (DFB) chart

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