Investing.com - The Australian dollar traded lower against its
U.S. counterpart during Wednesday's Asian session following a pair
of data points from the world's 12th-largest economy.
In Asian trading Wednesday, AUD/USD fell 0.31% to 0.9369. The pair
was likely to find support at 0.9281, Monday's low and resistance
at 0.9457, the high of September 23.
On Tuesday, the Aussie climbed after the Reserve Bank of Australia
decided to keep interest rates unchanged at 2.50% in their October
monetary policy statement. RBA Governor Stevens' remarks were
considered less dovish than expected, as he remarked that the
positive impact of the recent rate cut is just starting to be seen
in the economy.
Analysts forecast that there will be no rate cuts for the rest of
the year, as Australian retail sales and home prices have shown
positive developments in the past months. However, Stevens noted
that the Australian dollar is still relatively high and that a
lower exchange rate could provide support for the ongoing economic
However, the Aussie fell Wednesday after the Australian Bureau of
Statistics said building approvals there fell 4.7% last week
following a 10.2% gain in the prior week. The previous week's
figure was revised lower from a gain of 10.8%. Analysts expected
last week's number to drop 2%.
Separately, the Statistics Bureau said Australia had a trade
deficit of AUD815 million in August compared with a July deficit of
AUD1.375 billion. Economists expected an August deficit of AUD450
Elsewhere, AUD/JPY lost 0.50% to 91.66 after the Bank of Japan said
Japan's monetary base rose to 46.1% lat month from 42% in August.
Analysts expected a September reading of 45.3%.
AUD/NZD jumped 0.33% to 1.1395.
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