Navigating RBA Hawkishness and Economic Red Flags

• R1 0.6799– 11 July high – Strong
  
• R2 0.6753 – 21 August high– Medium
  
• S1 0.6637 – 19 August low– Medium
  
• S2 0.6563 – 15 August low – Strong
  

This week's RBA Minutes came out confirming the recent more hawkish leaning RBA decision. The central bank hinted at the fact that the cash rate would stay where it is for an extended period of time, while the possibility of additional tightening was also discussed. We've also seen the Australian Dollar getting added help from risk on flow and broad based US Dollar selling. There is some cause for concern however, after the Commonwealth Bank was out calling for a quicker deterioration in the Australian economy than the RBA. The Commonwealth Bank sees an RBA rate cut in November. Key standouts on Wednesday’s calendar come from UK public finances, Canada producer prices, and the Fed Minutes.