Aussie Declines As RBA Minutes Hint Possibility Of Further Rate Cuts The Australian dollar slipped against most major currencies in Asian morning deals on Tuesday, as minutes of the Reserve Bank of Australias latest monetary policy meeting showed that the board believe that the Australian economy continues to perform below trend, and therefore will not absolutely rule out additional stimulus. The members also observed that the Australian dollar remains uncomfortably high. The RBA decided to keep its benchmark cash rate unchanged at a record low of 2.5 percent at the meeting and said a lower Australian dollar may be needed to obtain balanced growth. Meanwhile, an index measuring the outlook for the Australian economy moved up 0.3 percent in September, the Conference Board revealed today, following the 0.2 percent contraction in August and the 0.2 percent gain in July. The boards coincident index added 0.1 percent following no change in the previous two months. The aussie declined to a 4-day low of 0.9351 against the greenback, reversing from Mondays highest level of 0.9418 in 10 days. The next possible support for the aussie-greenback pair lies around the 0.927 area. The aussie hit a 4-day low of 1.4433 against the European currency, after having touched a 6-day high of 1.4329 yesterday. If the aussie slides further, it may eye support at the 1.45 level. The aussie slipped to 0.9756 against the loonie, a level unseen since November 15. Further weakness could lead the aussie to face support around the 0.965 zone. The aussie reached a 4-day low of 93.42 against the yen, easing from near 4-week high of 94.18 hit on Monday. On the downside, the aussie is likely to aim support at the 92.5 mark. Looking ahead, Eurozone construction output for September and German ZEW economic sentiment index for November are due in the European session.
Posted on: Tue, 19 Nov 2013 05:27:20 +0000
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