AUD/USD: No response to dovish RBA minutes

RBA is ready to adjust policy if needed to support growth.
Labor market to remain soft in the coming months, according to RBA.
AUD/USD is seeing little action despite the dovish tone of RBA's minutes.

AUD/USD has barely moved in the last few minutes even though the minutes of the Reserve Bank of Australia's (RBA) July meeting released at 01:30 GMT revealed that the policymakers are willing to adjust policy "if needed" to support growth and inflation.

More importantly, the minutes said that jobs growth will continue to moderate in the coming months and the spare capacity is likely to remain in the labor market for some time. Also, the board is of the opinion that further job market gains are needed for wages to rise materially, minutes showed.

All-in-all, the RBA is going to monitor developments in the labour market closely and adjust monetary policy if needed to support sustainable growth in the economy and the achievement of the inflation target over time. Put simply, the central bank stands ready to cut rates for the third time this year.

So far, however, the dovish tone of the minutes has failed to move the needle on the Aussie dollar, leaving the AUD/USD pair largely unchanged on the day at 0.7040. The AUD's resilience could be considered a sign the market has already factored in the possibility of the RBA cutting rates by 25 basis points before the year-end.

Pivot points

1. R3 0.708
2. R2 0.706
3. R1 0.705
PP 0.703
1. S1 0.702
2. S2 0.7
3. S3 0.699

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