Focus of the yesterday's session was on RBA Meeting Minutes. The Australian Dollar came under some pressure Tuesday following the release of minutes from the Reserve Bank of Australia’s last monetary policy meeting. That took place back on October 3, with the record-low 1.50% Official Cash Rate left alone as had been expected. However, the minutes revealed that RBA rate-setters see no “mechanical implications” for Australian rates stemming from tighter monetary policy elsewhere. What this means is that tighter monetary policy in the US or Europe does not have to lead to higher rates in Australia unless local data warrant them. The RBA also took yet another chance to worry about the effects of excessive currency strength. The minutes warned that a further “material” rise in the Aussie Dollar would mean slower growth and weaker inflation.
In the U.S. session Industrial Production data was published. U.S. industrial output rose in September as the effects of Hurricanes Harvey and Irma began to fade and construction and utilities production bounced back, the Federal Reserve said on Tuesday. Overall industrial production increased 0.3 percent in September after an upwardly revised 0.7 percent decline in August.
There will be no major data releases from Australia tomorrow. In the US session Building Permits and Housing Starts figures will be published. Analysts predict slight increase in building permits, while housing starts should remain unchanged.
Figures to watch:
Building Permits/Housing Starts (Wednesday 14:30)
Last modified on Tuesday, 17 October 2017
