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Forex - AUD/USD slips lower after RBA minutes

Published 07/15/2014, 02:58 AM
Aussie falls against greenback on RBA remarks
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Investing.com - The Australian dollar slipped lower against its U.S. counterpart on Tuesday, as the Reserve Bank of Australia said interest rates should remain low for an extended period of time, although positive data lent some support.

AUD/USD hit 0.9371 during late Asian trade, the pair's lowest since July 10; the pair subsequently consolidated at 0.9369, shedding 0.24%.

The pair was likely to find support at 0.9342, the low of July 7 and resistance at 0.9456, the high of July 10.

In the minutes of its July policy meeting, the RBA reiterated that it expects a period of stable interest rates as they "are working to support demand."

The RBA added that the level of the Australian dollar "remained high by historical standards" and was "offering less assistance than it otherwise might in achieving balanced growth in the economy."

Separately, official data showed that new motor vehicles in Australia rose 1.7% in June, after an uptick of 0.4% in May, whose figure was revised up from a previously estimated 0.3% gain.

Meanwhile, as investors remained cautious before Federal Reserve Chairwoman Janet Yellen testifies before Congress on Tuesday and Wednesday.

In the minutes of the Federal Reserve's June policy meeting released last week, the U.S. central bank predicted an October close to its bond-buying stimulus program but did not hint at a timetable as to when interest rates may begin to rise afterwards.

The Aussie was lower against the euro, with EUR/AUD edging up 0.19% to 1.4527.

Later in the day, the U.S. was to release data on retail sales, as well as data on import prices, business inventories and manufacturing activity in the Empire state.

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