RBA decided to keep its current rate with no rush to taper, US retail sales better than expected and pushed DXY to above 96

No surprises came out from RBA’s latest minutes. Policymakers indicated that the current scale of QE was appropriate and was in no rush to taper. Moreover, the rate has been kept at 0.10% until wage and inflation targets are met. Currently, the inflation target band is at 2-3%. AUDUSD dropped today by 0.31%, currently trading at 0.7279 at press time.

In the US, retail sales surged in October as people picked up holiday shopping earlier, probably to avoid supply chain shortages under COVID. On a monthly basis, retail sales jumped 1.7%. On a yearly basis, it rose by 16.3%. Although inflation has been quite high, economists suggest that rising stocks and wages might have provided some cushion against rising consumer prices. DXY Index is now trading above the 96-level, around 96.04 at press time.