Australian dollar remains steady in tight range in Asian session after RBA minutes. The minutes for August 4 meeting noted that " an accommodative monetary policy setting remained appropriate given the forecasts, while observing that the Australian dollar had been adjusting to the shift in activity in the resources sector from the investment production phase." The central bank reiterated that "further depreciation of the Australian dollar was expected to impart stimulus to the economy through stronger net exports." RBA also noted the expected rate hike by Fed this year and said that "it was likely that financial market volatility would increase and the U.S. dollar could appreciate further, including against the Australian dollar."
Regarding the economy, RBA said that "economic activity had generally been more positive over recent months." But, "there remained considerable uncertainty around the timing and strength of the recovery in non-mining business investment." And, "the period of significant structural change for the Australian economy associated with the winding down of the mining investment boom would continue for some time." Overall, some analysts noted that the minutes were slightly less dovish than prior ones and suggested that the cash rate would possible stay at 2.00% for some time.
Looking ahead, UK inflation data will be the main focus in US session. Headline CPI is expected to be unchanged at 0.0% yoy in July while core CPI is expected to be unchanged at 0.8% yoy. RPI is also expected to be unchanged at 1.0% yoy. PPI input is expected to drop to -12.8% yoy, PPI output unchanged at -1.5% yoy and PPI output core to rise to 0.2% yoy. From US, new residential construction will be released. Building permits are expected to drop to 1.21m in July while housing starts are expected to rise to 1.20m.