Forex - AUD/USD falls after RBA minutes
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 consecutive quarters.
"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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