Australian Dollar Falls After RBA Minutes
17 April 2018 - 1:12PM
RTTF2
The Australian dollar declined against its most major
counterparts in the Asian session on Tuesday, after minutes from
the Reserve Bank of Australia's recent meeting showed that the
country's economy is expected to continue on its gradual path of
growth, indicating that a shift in monetary policy is unlikely
soon.
The minutes from the central bank's April 3 meeting showed that
there was no strong case for a near-term adjustment in monetary
policy, as progress in lowering unemployment and pick up in
inflation was expected to be only gradual.
The bank noted that the low level of interest rates is
continuing to support the Australian economy.
Meanwhile, members agreed that it was more likely that the next
move in the cash rate would be up, rather than down.
Investors digested a raft of mixed economic data from China,
Australia's largest trading partner.
Data released by China today showed that the country's gross
domestic product or GDP rose 6.8 percent in the first quarter on a
yearly basis - in line with expectations and down from 6.9 percent
in the previous quarter.
In addition, China's industrial production and fixed asset
investment rose in March, but missed forecasts, while retail sales
growth in the month exceeded expectations.
Pulling away from a 4-day high of 0.7787 against the greenback,
the aussie edged down to 0.7761. The next possible support for the
aussie is seen around the 0.76 level.
The aussie declined to a 4-day low of 0.9758 against the loonie
and a 5-day low of 83.06 against the yen, from its early highs of
0.9782 and 83.38,respectively. If the aussie slides further, 0.95
and 82.00 are likely seen as its next support levels against the
loonie and the yen, respectively.
The aussie slid to a 5-day low of 1.5955 against the euro, from
a high of 1.5904 hit at 9:30 pm ET. The aussie is seen finding
support around the 1.62 level.
On the flip side, the aussie climbed to near a 2-week high of
1.0593 against the kiwi, compared to Monday's closing value of
1.0565. The aussie is poised to find resistance around the 1.08
region.
Data from the Real Estate Institute of New Zealand showed that
New Zealand's house prices increased in March from a year ago,
while sales declined notably.
The national median house price index climbed 1.8 percent
year-over-year to a new record high of NZ$560,000 in March.
Month-on-month, house prices grew 5.7 percent.
Looking ahead, U.K. claimant count rate for March, ILO jobless
rate for the three months ended February and German ZEW economic
sentiment for April are due in the European session.
In the New York session, Canada manufacturing sales for
February, U.S. housing starts, building permits and industrial
production for March are scheduled for release.
At 10:00 am ET, Federal Reserve Governor Randal Quarles will
testify on supervision and regulation before the House Financial
Services Committee in Washington DC.
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