A$ Softens on RBA Minutes, Yields Lower

AUD/USD has turned offered post the RBA minutes. The currency back sub 0.6830, -0.35% below NY closing levels. The 3yr bond yield is lower as well, last near 4.00%, down from earlier highs in the 4.05%/4.06% region.

• Pressure may be coming from the minutes, which stated: "Members reaffirmed their determination to return inflation to target and their willingness to do what is necessary to achieve that." The June monetary policy statement had "Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve."
• There isn't a huge difference, in our view, from the intent from the two sentences. Both suggest a further need to tighten policy if necessary although the June statement is more explicit. The shift appears to be impacting market sentiment at this stage. More details on the RBA mins to follow.