Minutes of the latest RBA monetary policy said, “Members agreed that there was no need to adjust the package of measures in Australia in the current environment.” This refuses the earlier hopes that the policymakers are worried about the second wave of the corona virus (COVID-19).

In a speech titled “COVID 19, the Labour Market and Public-sector Balance Sheets”, Lowe said direct cash transfers to households and businesses as well as boosting public spending on infrastructure and wage subsidy schemes were examples of how the government could “smooth things out”.

He added “By helping the economy today, these measures also support the all-important confidence,” “So they assist with a return to more normal patterns of spending and consumption, without the need for ongoing fiscal stimulus.”

He said that the employment seems to be better as compared to the previous months. “In June, hours worked increased by 4 per cent and the number of employed people rose by 210,000.”On the positive side of the ledger, many firms that were heavily affected by the shutdowns are now rehiring and lifting hours as the restrictions are eased in most of the country.”

He added “By helping the economy today, these measures also support the all-important confidence,” “So they assist with a return to more normal patterns of spending and consumption, without the need for ongoing fiscal stimulus.”

Mr. Philip Lowe also ruled out negative interest rates and intervention in the foreign exchange markets as possible policy options.

AUD/USD 4 Hour Chart:

Support: 0.6987 (S1), 0.6957 (S2), 0.6943 (S3).

Resistance: 0.7032 (R1), 0.7047 (R2), 0.7076 (R3).

Monetary Policy Meeting Minutes and Mr. Lowe speech builds confidence among investors for Aussie. We expect a bullish trend for AUD/USD.