Article by ForexTime
The Australian dollar rose against the greenback after the release of the Reserve Bank of Australia minutes of the latest September board meeting. There is increasing speculation the central bank may lift interest rates if the housing market overheats.
The Aussie rose to an intraday high of US90.54c shortly after the Reserve Bank of Australia released minutes of its
The RBA’s comments about the risk of further large house price rises gave the local currency a boost.
“It looks like the RBA has a focus on housing and that they don’t want the housing market to overheat, and one way to do that is to lift interest rates,” he said.
“That gave a little boost to the Australian dollar even though it was not clear cut.
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“Nothing dovish came out of the minutes, which helped the Australian dollar grind higher to towards the 90.55 US cents area.”
The RBA reiterated its stance of keeping the cash rate stable at 2.5 per cent for some time.
The minutes also said: “Housing prices were continuing to increase in the larger cities and members considered that the risks associated with this trend warranted ongoing close observation.”
Article by ForexTime
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