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Forex - Australian dollar flat after RBA minutes, BoJ decision ahead

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Investing.com -

Investing.com - The Australian dollar was flat after the release of the July 1 Reserve Bank of Australia board meeting minutes on monetary policy released on Tuesday, with the exchange rate a key focus of policy chatter.

AUD/USD traded at 0.9390, down 0.02%, after th data, while USD/JPY traded at 101.61, up 0.06%, ahead of the latest Bank of Japan board review of policy.

"The exchange rate remained high by historical standards, particularly given the declines in key commodity prices, and was therefore offering less assistance than it otherwise might in achieving balanced growth in the economy," the RBA said in the minutes posted on its Website.

Then the BoJ is set to announce its latest policy decision around 1230 Tokyo time (0330 GMT).

The BoJ board is likely to stand pat on monetary policy at its two-day meeting as the economy has been moving in line with its recovery scenario presented in April.

BoJ Governor Haruhiko Kuroda's regular post-meeting news conference is due to start at 1530 (0630 GMT).

Overnight, the dollar held steady against most major currencies on as investors stood on the sidelines before Federal Reserve Chairwoman Janet Yellen testifies before Congress on Tuesday and Wednesday.

In the minutes of the Federal Reserve's June policy meeting released last week, the U.S. central bank predicted an October close to its bond-buying stimulus program but did not hint at a timetable as to when interest rates may begin to rise afterwards.

Elsewhere, euro zone industrial output numbers that met market expectations boosted the single currency over the greenback.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.01% at 80.21.

On Tuesday in addition to Yellen, the U.S. is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.

The U.S. is also to release data on import prices, business inventories and manufacturing activity in New York state.

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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.

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