Australian Dollar Trades Lower After RBA Minutes
June 17 2019 - 9:56PM
RTTF2
The Australian currency drifted lower against its major
counterparts in the Asian session on Tuesday, after minutes from
the Reserve Bank of Australia's recent meeting showed that further
interest rate cuts would be appropriate in the coming months to
help boost economy.
Policymakers of Reserve Bank of Australia suggested that it was
more likely than not that a further easing in monetary policy would
be appropriate in the period ahead, according to the minutes from
the central bank's monetary policy meeting held on June 4.
Members said developments in the labor market would be
particularly important, in assessing whether more easing was
appropriate.
However, members observed that lowering the interest rate was
not the only policy option available to help reducing the jobless
rate.
At the meeting, members further observed that a lower level of
interest rates would stimulate activity and thereby improve the
resilience of the Australian economy to any future adverse
shocks.
Data from the Australian Bureau of Statistics showed that
Australia's house price index declined in the first quarter of
2019.
House prices in Australia were down 3.0 percent sequentially in
the March quarter. That exceeded expectations for a decline of 2.6
percent.
The aussie fell to a 5-1/2-month low of 0.6833 against the
greenback and held steady thereafter. The pair was worth 0.6853 at
Monday's close. The aussie is seen finding support around the 0.66
level.
The Australian unit weakened to 73.99 against the Japanese
currency, its lowest since January 3, and held steady in subsequent
deals. At yesterday's close, the pair was valued at 74.38. If the
aussie falls further, 72.00 is likely seen as its next possible
support level.
The aussie that ended yesterday's trading at 1.6370 against the
euro slipped to a 5-1/2-month low of 1.6435 at 1:00 am ET. On the
downside, 1.67 is possibly seen as the next support level for the
aussie.
The aussie declined to a 7-month low of 0.9161 against the
loonie at 11:55 pm ET and traded steadily since then. The next
possible support for the aussie is seen around the 0.90 level.
The Australian currency dipped to a 4-day low of 1.0523 against
the NZ dollar and held steady afterwards. Should the aussie falls
further, 1.04 may be seen as its next support level.
Survey data from Westpac showed that New Zealand's consumer
sentiment weakened slightly in the second quarter as households
remained downbeat about the economic backdrop.
The Westpac McDermott Miller consumer confidence index dropped
0.3 points to 103.5 in June.
Looking ahead, German ZEW economic sentiment index for June,
Eurozone trade data for April and consumer inflation for May are
due in the European session.
In the New York session, U.S. housing starts and building
permits for May, as well as Canada manufacturing sales for April
are set for release.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Apr 2024 to May 2024
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From May 2023 to May 2024