Investing.com - The Australia dollar remained a tad weaker in
Asian trade on Tuesday after the central bank released minutes from
its November monetary policy review that suggested another rate cut
below a record low 2.5% remains a possibility.
AUD/USD traded at 0.9373, down 0.03%, in a range of 0.9354 - 0.9386
after the Reserve Bank of Australia said it would not close the
possibility to support sustainable economic growth even as evidence
of the impact the cash rate cuts in an easing cycle two years old
becomes evident, according to the minutes of the Nov. 5 board
meeting released on Tuesday.
The minutes suggested that the exchange rate however remains
"uncomfortably high" and has hindered a shift from resources-led
investment to housing and other sectors.
The RBA said it judged it was prudent to leave the cash rate
unchanged, but "not to close off the possibility of reducing it
further should that be appropriate to support sustainable growth in
economic activity, consistent with the inflation target."
USD/JPY traded at 99.67, down 0.32%, in a range of 99.57 - 100.01
as the Nikkei fell in morning trade, down 0.73%, following a weak
of solid gains linked to a weaker yen helping exporters. But
comments overnight indicating the Federal Reserve will leave its
ultra-loose monetary policies in place into early 2014 gave the yen
room to retrace recent weakness.
"While growth in 2013 has been disappointing, I believe a good case
can be made that the pace of growth will pick up some in 2014 and
then somewhat more in 2015," Bank of New York President William C.
Dudley said on Thursday.
Still, Dudley gave no real indication as to when bond purchases may
taper, which kept the greenback in negative territory.
Elsewhere, National Association of Home Builders/Wells Fargo
Housing Market Index came in unchanged in November at 54, missing
analysts' calls for an uptick to 55 this month.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, traded at 80.72,
On Tuesday, the U.S. is to release data on the employment cost
index, an important inflation indicator.
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