AUD falls despite upbeat RBA minutes
The Reserve bank of Australia published the meeting minutes from the early February monetary policy meeting. The minutes showed the central bank maintaining an upbeat picture on the Australian economy. Despite the optimism from the RBA, the Australian dollar failed to hold on to the gains from yesterday as prices were seen trading bearish since the open.
The RBA's meting minutes showed that after policy makers assessed the economic outlook, the members felt that there was no need for interest rates to be changed. Members also believed that keeping interest rates stable would help the economy edge closer to the RBA's inflation target back of 2 - 3% over time.
Australia inflation was seen rising to 1.5% at the latest quarterly reading. The RBA left interest rates unchanged during its meeting in early February at 1.5% in a widely expected move, matching investor expectations.
The RBA Governor, Philip Lowe also forecasted that the economy is expected to expand at a solid pace of 3% this year which, according to him was enough to keep the unemployment rate low.
However, there have been problems with the unemployment rate as most of the job gains were seen coming from part-time jobs. The RBA Governor is expected to give a testimony to the Australian parliament on Friday.
How we trade binary?
AUDUSD is bearish with a U.S. dollar that has strengthened earlier today. Price action has formed an inside bar on the daily chart and we could expect to see further declines coming. The rally towards 0.7684 saw a reversal take place. Therefore, purchase PUT options at 0.7668 for an end of day expiry as AUDUSD is expected to post further declines during the day.
Target price: 0.7668
Expiry: 21:00 GMT