RBA minutes: policy appropriate, Aug cut not as likely

FXstreet.com (Barcelona) - The June RBA minutes just published showed a slightly less dovish stance by the RBA, arguing that "the Board also judged that the inflation outlook, although slightly higher because of the exchange rate depreciation, could still provide some scope for further easing, should that be required to support demand."

The RBA added: "Given the exchange rate adjustment that was occurring, and with the substantial degree of monetary stimulus already in place, members assessed the current stance of policy to be appropriate for the time being."

RBA on the A$ value, said: "Members noted that itwas possible that the exchange rate would depreciate further over time as the ToT and mining investment declined."

Traders have been able to gain further insights on the present RBA monetary policy stance, resulting on a significant 40+ pips appreciation of the Australian Dollar as the markets price out chances of the RBA cutting rates in August.