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Forex - Aussie falls ahead of RBA minutes release, Eurogroup in focus

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Investing.com -

Investing.com - The Australian dollar trended lower in early Asia on Tuesday ahead of central bank minutes from the most recent policy meeting while the euro also fell as investors looked ahead to a key meeting later in the week.

AUD/USD traded at 0.7760, down 0.08%, while USD/JPY changed hands at 123.41, up 0.01%. EUR/USD was quoted at 1.1278, down 0.06%.

RBA Assistant Governor Guy Debelle due to speak at the Launch of Financial Integration in the Asia Pacific: Future of Australian Financial Services, in Sydney at 0755 (2155 GMT).

Still in Australia, the RBA releases the minutes of its June 2 board meeting at 1130 (0130 GMT). At that meeting, the RBA kept its cash rate target unchanged at 2.00%.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.02% at 95.09.

Overnight, the dollar pared gains against a basket of other major currencies on Monday, after the release of downbeat U.S. economic reports, although hopes the Federal Reserve will soon raise interest rates still lent some support.

The Federal Reserve said that industrial production declined by 0.2% last month, disappointing expectations for a gain of 0.3%. Industrial production fell by 0.5% in April, whose figure was revised down from a previously reported drop of 0.3%.

The report came after the Federal Reserve Bank of New York said that its general business conditions index fell to -2.0 this month from a reading of 3.1 in May. Analysts had expected the index to rise to 6.0 in June.

Market participants were looking ahead to the outcome of the Fed's latest policy meeting on Wednesday for a clear signal on when it could start to raise interest rates.

Upbeat data on U.S. consumer sentiment on Friday underlined expectations that the central bank could start to hike rates at its September meeting.

The euro remained under pressure after talks in Brussels between Greece and European Union representatives failed to reach an agreement on pension reforms, budget targets and tax rates, adding to fears over a debt default that would threaten Greece's future in the euro zone.

Investors were looking ahead to a meeting of euro zone finance ministers on Thursday, which was being seen as Greece's last chance to strike a deal.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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