Officials at the Reserve Bank of Australia (RBA) are awaiting further information on growth and inflation before deciding whether to adjust monetary policy, the minutes of the July 5 meetings revealed Tuesday. “The Board noted that further information on inflationary pressures, the labour market and housing market activity would be available over the following month and that the staff would provide an update of their forecasts ahead of the August Statement on Monetary Policy,” the official July 5 minutes said. “This information would allow the Board to refine its assessment of the outlook for growth and inflation and to make any adjustment to the stance of policy that may be appropriate.”

The RBA voted to keep its benchmark interest rate at 1.75% earlier this month. That was the second consecutive month interest rates have remained on hold. Policymakers voted to cut the benchmark rate by 25 basis points to 1.75% in May, a new all-time low. Like in May, the justification for another rate cut likely boils down to inflation. Australia’s quarterly inflation report pointed to alarmingly weak price growth through the first three months of the year, compelling the nine-member Reserve Bank Board to ease monetary policy further. Market participants widely expect a further reduction to the benchmark interest rate later this year as officials look to quell Australia’s deflationary spiral.

 

Aussie is currently being traded few points below 0.7530 level. Pair is likely to find support around 0.7480 handle and resistance above 0.76 level.