AUD: Further gains would make another cut in Q4 more likely - BBH

Research Team at BBH, notes that the RBA minutes were released overnight and at that meeting, the RBA cut rates 25 bp to 1.5%.  

Key Quotes

“It noted “The risks associated with rising household sector leverage and rapid gains in housing prices had diminished.” The RBA also noted “considerable uncertainty” regarding growth and inflation, which leaves the door open to further easing. 

Next RBA meeting is September 6, no move is seen then since the RBA’s pace of easing this year has been modest (cuts in May and August).  The RBA noted that a stronger currency complicates the adjustment process, and so further AUD gains would make another cut in Q4 more likely.”