FX.co ★ Australian Dollar Weakens After RBA Minutes

The Australian dollar slipped to around $0.70 on Tuesday after the Reserve Bank of Australia’s minutes offered no firm guidance on the future path of interest rates, instead underscoring that upcoming decisions will hinge on new data and the evolving balance of risks. The board reiterated that the recent cash rate increase was warranted, highlighting that risks around both inflation and the labour market have become more worrisome. Officials judged that, without additional tightening, inflation would likely stay above the RBA’s 2–3% target band for an extended period. The minutes also drew attention to financial conditions, which have loosened significantly in recent months as banks continue to lend readily and credit growth remains strong. Investors are now looking to Q4 wage figures and January labour market data for clearer indications on the trajectory of inflation, the resilience of employment, and the broader outlook for monetary policy.