The Australian Dollar positive market mood lingers as prices hit a three-month high against its US Dollar rival.
On Tuesday, the Reserve Bank of Australia (RBA) unveiled the minutes of the last meeting.
In the minutes, the RBA said that higher interest rates would help lower upward prices in the real estate market, though it would come at the cost of fewer jobs and weaker wages growth.
Furthermore, the minutes revealed that such a move would distance the bank from achieving monetary policy goals – namely, full employment and inflation around the 2-3% target.
The US Dollar Index (DXY), which tracks the greenback’s performance against its six major rivals, remains flat at 93.60-65.
Looking ahead, the RBA governor, Dr Philip Lowe, is scheduled to participate in a panel discussion about central bank independence, mandates, and policies at an online event hosted by the University of Chile.
Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator remains in an extreme overbought condition, while the Moving Average Convergence Divergence (MACD) holds a positive signal, and the ASX holds to a positive trend.
At present, a neutral stance holds; however, it is considered the ‘market bears’ will soon ambush the bulls around the current highs.