Australian Dollar: The release of the RBA board minutes saw a fairly muted reaction initially on the AUD/USD as it drifted around the 0.8890 level before popping through the 89 cents in Asian afternoon trade. Despite a compelling argument based on local economic fundamental data the central bank resisted the urge to raise the official cash rate stating uncertainty over the outlook in Europe and China as the main reasons to pause in February. Despite this the market continued to price in more rate rises later in the year and with commodity prices, in particular gold and crude oil futures, gaining almost 2% the AUD/USD roared higher to open this morning on its highs marginally above the psychological 90 cent barrier.
- I expect a range today in the AUD/USD rate of 0.8950 to 0.9050
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