Australian Dollar (AUD) Exchange Rate: RBA Minutes Push ‘Aussie’ Lower
The Australian Dollar exchange rate dropped against the majority of its most traded counterparts during Australasian trading.
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The expectation that tomorrow’s Chinese growth data will confirm that the world’s largest economy is struggling piled pressure on the ‘Aussie’ but it was minutes from the Reserve Bank of Australia’s April policy meeting which were largely responsible for the currency’s losses.
Both the Australian Dollar to US Dollar (AUD/USD) and Australian Dollar to British Pound (AUD/GBP) pairings edged lower as investors processed the minutes.
While the minutes showed that the central bank has confidence in aspects of the Australian economy’s performance, the RBA did go back to referencing the strength of the local currency, remarking that it remains ‘high by historical standards’.
The RBA went on to state; ‘Members noted that dwelling investment had increased moderately in the December quarter, with a pick-up in renovation activity, and that the high level of dwelling approvals in recent months foreshadowed a strong expansion in dwelling investment. […] A range of indicators of labour demand suggested a modest improvement in prospects for employment. Members noted that future employment growth was likely to continue to be concentrated in service industries.’
It was the implication that the RBA intends to leave policy unaltered, and interest rates at record lows, for the foreseeable future which saw the Australian Dollar move away from its recent five-month high against its US cousin.
The ‘Aussie’ held on to declines during European trading, and the AUD/USD pairing edged lower still after the release of positive US inflation figures.
Overnight the Australian Westpac leading index could cause ‘Aussie’ movement, as could China’s growth figures.
The Australian Dollar is currently trading against the US Dollar in the region of 0.9354 and trading against the Pound in the region of 0.5587