RBA statement came out with rather mixed tone

  • Inflation forecast little change from May
  • CPI outlook slightly higher due to utility cost
  • Cuts 2017 GDP forecast by half point to 2-3%
  • Further AUD rise would lower economic growth and inflation

In the meantime Australia’s retail sales numbers were slightly better, June retail sales rose 0.3%mom vs 0.2% fcst, 2Q retail sales rose 1.5% vs 1.2% fcst

AUD$ fell from 0.7960 to 0.7940 before the data, back up to 50 then hovering around 40 currently.