Australian Dollar Drops As RBA Minutes Indicate Further Easing
17 September 2019 - 1:29PM
RTTF2
The Australian dollar fell against its major counterparts in the
Asian session on Tuesday, after the minutes from the Reserve Bank
of Australia's latest meeting showed that the board would ease
monetary policy further, if required to support growth and
inflation target.
The members assessed that an extended period of low interest
rates would be required to make sustained progress towards
employment and achieve the inflation target, according to the
minutes from the September 3 meeting.
Members agreed that they would assess developments in both the
international and domestic economies, including labour market
conditions, and would ease monetary policy further if needed to
attain growth and inflation target.
The board observed that the risks to the global growth outlook
were tilted to the downside.
Rising trade conflict between the United States and China and
slowing growth in China had weighed on trade and investment
decisions in overseas economies, although businesses had continued
hiring and labour market conditions had remained tight.
Data from the Australian Bureau of Statistics showed that
Australia's house prices fell 0.7 percent on quarter in the second
quarter of 2019.
That exceeded expectations for a decline of 1.1 percent
following the 3.0 percent drop in the three months prior.
The aussie declined to 1.6117 against the euro, from a 5-day
high of 1.6015 hit at 5:15 pm ET. The aussie is seen finding
support around the 1.63 mark.
The aussie dropped to near a 2-week low of 0.6832 against the
greenback, from Monday's closing value of 0.6865. If the aussie
slides further, 0.67 is likely seen as its next support level.
The aussie fell to 1.0790 against the kiwi and 73.90 against the
yen, from its early high of 1.0828 and a 4-day high of 74.29,
respectively. The next possible support for the aussie is seen
around 1.05 against the kiwi and 72.5 against the yen.
The Australian currency that closed Monday's trading at 0.9089
against the loonie depreciated to a 5-day low of 0.9053. The aussie
is likely to challenge support around the 0.89 region, if it drops
again.
Looking ahead, German ZEW economic sentiment index for September
is due in the European session.
In the New York session, Canada manufacturing sales for July,
U.S. industrial production for August and NAHB housing market index
for September are scheduled for release.
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