Forex – U.S. Dollar, AUD/USD Near Flat; RBA Minutes in Focus
The Aussie dollar was little changed against its U.S. counterpart on Tuesday in Asia.
The AUD/USD pair slipped 0.1% to 0.7036 by 1:00 AM ET (05:00 GMT). Minutes from the Reserve Bank of Australia’s monetary policy meeting in July showed the central bank was ready to adjust interest rates if needed to support economic growth and to keep inflation in check to achieve its target.
“The Board would continue to monitor developments in the labour market closely and adjust monetary policy if needed to support sustainable growth in the economy and the achievement of the inflation target over time,” the minutes showed. “Lower interest rates would provide more Australians with jobs and assist with achieving more assured progress towards the inflation target.”
The central bank had cut the cash rate to 1% in July, a new all-time low.
Meanwhile, the U.S. Dollar Index that tracks the greenback against a basket of other currencies last traded at 96.583, up 0.04%.
Overnight, the New York Federal Reserve said that its Empire State manufacturing index for July came in at 4.3 points, compared to -8.6 in June.
A reading above zero suggests an expansion in regional business activity.
Despite the positive data, the prospect of a Federal Reserve interest rate cut is month continued to keep the dollar on the defensive.
The EUR/USD pair was little changed at 1.1259 ahead of a European Central Bank meeting next week, where traders expect the bank to keep rates steady.
The USD/JPY pair was up 0.1% to 107.99.
The USD/CNY pair was unchanged at 6.8741. The Chinese currency was little impacted by a slew of data on Monday that showed economic growth slowed to a 27-year low.