Australian dollar little moved by RBA minutes

The dollar was little changed today even after the RBA said the currency’s recent weakness would deliver stimulus to the economy.

The Australian dollar was little changed today even after the RBA said the currency’s recent weakness would deliver stimulus to the economy.

The Australian dollar was recently trading at US73.64c compared with US73.75c late yesterday.

The Reserve Bank of Australia indicated growing optimism about the economy.

Its comments came in the minutes of its August 4 policy meeting, when it left interest rates steady at a record-low 2 per cent.

“Members noted that an accommodative monetary policy setting remained appropriate given the forecasts, while observing that the Australian dollar had been adjusting to the shift in activity in the resources sector from the investment production phase,” the RBA said.

“Further depreciation of the Australian dollar was expected to impart stimulus to the economy through stronger net exports,” it added.

The comments marked a further softening of the RBA’s rhetoric around the Australian dollar, after months of warning the currency was too high, especially in light of plunging coal and iron prices.

The weaker Australian dollar was also helping to lift exports in services industries such as tourism, the central bank said.

The RBA appeared more upbeat about recent economic developments, said Ivan Colhoun, chief economist at National Australia Bank.

“Certainly more of a glass half-full view of the economy than has been evident in recent times. No suggestion of any active consideration of a further easing in the near term,” he said.