The Australian dollar held steady at approximately $0.652 on Tuesday after two consecutive days of gains. This stability follows the release of the latest minutes from the Reserve Bank of Australia's (RBA) meeting. During the meeting, the central bank considered implementing a third rate cut within four sessions but ultimately decided to maintain the current rates. The decision aligns with a cautious easing strategy, as the majority of RBA members preferred to await clearer indications of sustained inflation within target levels before any further monetary actions. A minority argued for a rate cut due to ongoing concerns about global and domestic economic growth risks. Despite this, the market continues to anticipate a 91% likelihood of a rate cut during the policy meeting scheduled for August 12.
Concurrently, the trade relationship between Australia and the United States is being closely monitored. Prime Minister Anthony Albanese downplayed apprehensions about the lack of a scheduled meeting with US President Donald Trump. He stated that Australia has been accorded extremely favorable trade conditions with the present US administration, emphasizing the nation's commitment to valuing mutual respect in its international partnerships.
