By Dailyfx.......
AUD Discussion Point:
AUDUSD trades in a narrow range following the Reserve Bank of Australia (RBA) Minutes, and the exchange rate may continue to consolidate over the remainder of the week as attention turns to the Kansas City Fed Economic Symposium in Jackson Hole, Wyoming.
AUDUSD MONTHLY RANGE ON RADAR AHEAD OF FED ECONOMIC SYMPOSIUM
The RBA Minutes failed to generate a meaningful reaction in AUDUSD even though the central bank keeps the door open to implement lower interest rates, and it seems as though the central bank will continue to endorse a dovish forward guidance as “members would consider a further easing of monetary policy if the accumulation of additional evidence suggested this was needed to support sustainable growth in the economy.”
In contrast, recent remarks from Boston Fed President Eric Rosengren, a 2019-voting member on the Federal Open Market Committee (FOMC), suggest the Federal Reserve is in no rush to embark on a rate easing cycle as the official insists that the central bank needs “to be careful not to ease too much when we don’t have significant problems.”
At the same time, San Francisco Fed President Mary Daly asserts that there’s little evidence of a looming recession as “the labor market is strong, consumer confidence is high, and consumer spending is healthy,” but the ongoing shift in US trade policy may spur a growing rift within the FOMC as the committee comes under pressure to reverse the four rate hikes from 2018. Read More....