Investing.com - After starting Tuesday's Asian session in fine
form, the Australian dollar fell against its U.S. counterpart
following the release of minutes from the Reserve Bank of
Australia's most recent meeting.
In Asian trading Tuesday, AUD/USD fell 0.17% to 0.9527 after
earlier trading as high as 0.9574. The pair was likely to find
support at 0.9430, the low of June 13 and resistance at 0.9760, the
high of June 4.
In a news release, RBA said, Australia's inflation outlook may
provide room for further easing. RBA held interest rates at 2.75%
following its June 4 meeting, but that is a record low and the bank
has shown a penchant for rate cuts dating back to 2011.
Monetary easing could be necessary down the road because, while
steady, Australia's GDP has been slightly below trend for four
"In China, economic activity appeared to be expanding at a steady
pace, driven by strong investment growth, with both infrastructure
and real estate investment continuing to grow strongly. Conditions
in the residential property market remained buoyant in April,
although members observed that recently announced controls could
weigh on activity in coming months, depending on how widely and
strictly they were enforced," RBA said in the statement.
However, in data released earlier Tuesday, China's National Bureau
of Statistics said new home prices there rose 6% in May. That could
significantly limit the chances of an interest rate cut in China,
which is trying to fight off a property bubble. China is
Australia's largest trading partner.
"At this meeting, members viewed the current stance of monetary
policy as appropriate for the time being. The Board also judged
that the inflation outlook as currently assessed might provide some
scope for further easing, should that be required to support
demand," said RBA.
Elsewhere, AUD/JPY inched down 0.07% to 90.17 while AUD/NZD fell
0.3% to 1.1929.
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