AUD/USD Outlook: AUD Lifted as Chinese Trade Resumes, RBA Minutes Next

The RBA statement revealed a more balanced picture in terms of the risks to the inflation outlook now that the general level of prices has moderated but expect a line or two in the minutes pointing to the concerning level of inflation despite recent progress. The last time the RBA hiked rates is still fresh in the memory after a spate of rising inflation in Q3 prompted RBA officials to raise the policy rate by 25 basis points. Expect the minutes to show a need for greater conviction in the downward path of inflation and some easing in the labour market toward the more sustainable long run average. After more then a week of holidays around the Lunar Ney Year, Chinese equity markets opened up in the green and held onto those gains into the end of the day. Shorter-term bullish momentum is likely to be tested this week with few AUD drivers outside of the Chinese effect. Chinese authorities left the 1-year medium term lending facility unchanged at 2.5% as financial support has take on more of a direct approach judging by recent measures. Chinese equities sold off at the end of last year as pessimism around the Chinese economy gained traction.