The Australian dollar is making a run for the US77c mark today after the latest minutes meeting from the RBA showed no desire to cut rates further in the nearest future.
The currency has now risen for a fifth consecutive day by more than US1c as earlier predictions of a rate cut fade, as well as expectations the RBA will hit their target inflation rate in the nearest future.
The minutes noted that Australia was successfully transitioning away from the effects of the mining boom which would ultimately lead to job creation and in turn push costs higher which would be a welcome relief for the RBA as low inflation was one of the major reasons for 2 earlier rate cuts.
“There was a reasonable prospect of sustaining growth in economic activity that would support further employment growth and, in time, a gradual increase in wage growth and inflation. At the same time, however, there remained considerable uncertainty about momentum in the labour and housing markets.” the minutes said
They also mentioned that over the next month the situation would become clearer on the job and property markets as well as the effects of the 2 previous rate reductions.
“Members noted that data on CPI inflation for the September quarter and an update of the forecasts would be available at the next meeting. This would provide an opportunity to consider the economic outlook, assess the effects of previous reductions in the cash rate and review conditions in the labour and housing markets,” the minutes added.