All trading involves risk. Losses can exceed deposits.

Aussie stronger ahead of RBA minutes

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

All trading involves risk. Losses can exceed deposits.

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

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.