Investing.com - The Australian dollar traded lower against its U.S. counterpart during Wednesday’s Asian session as traders took profits in the Aussie after the after the currency was lifted by central bank meeting minutes.
In Asian trading Wednesday, AUD/USD fell 0.32% to 0.9224. The pair was likely to find support at 0.9036, Monday's low and resistance at 0.9306, the high of July 11.
The Aussie got a lift Tuesday after the Reserve Bank of Australia said in minutes from its latest policy meeting showed that policymakers believe the current stance of the bank's policy to be appropriate, sending the Aussie higher.
The RBA also said the inflation outlook was “slightly higher” due to the Aussie’s recent drop.
Meanwhile, investors were awaiting Federal Reserve Chairman Bernanke's testimony on monetary policy amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.
The greenback fell sharply last week after Bernanke said the U.S. economy still needed monetary stimulus.
Wednesday’s action in U.S. dollar-related pairs could be a sign that traders are expecting Bernanke will change his tune from last week and make comments that boost the greenback. The U.S. Dollar Index is up 0.21% at 82.80 at this writing.
In U.S. economic news out Tuesday, the National Association of Home Builders/Wells Fargo housing-market index rose to 57 in July from 51 in June. The July reading is the highest since January 2006.
The Labor Department said U.S. consumer price inflation rose 0.5% in June following a 0.1% rise in May. Economists expected a 0.3% June increase. Core CPI increased at annualized rate of 1.6% last month, in line with forecasts and slowing from 1.7% in May.
Meanwhile, AUD/JPY rose 0.11% to 91.80 while AUD/NZD fell 0.10% to 1.1715.
In Asian trading Wednesday, AUD/USD fell 0.32% to 0.9224. The pair was likely to find support at 0.9036, Monday's low and resistance at 0.9306, the high of July 11.
The Aussie got a lift Tuesday after the Reserve Bank of Australia said in minutes from its latest policy meeting showed that policymakers believe the current stance of the bank's policy to be appropriate, sending the Aussie higher.
The RBA also said the inflation outlook was “slightly higher” due to the Aussie’s recent drop.
Meanwhile, investors were awaiting Federal Reserve Chairman Bernanke's testimony on monetary policy amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.
The greenback fell sharply last week after Bernanke said the U.S. economy still needed monetary stimulus.
Wednesday’s action in U.S. dollar-related pairs could be a sign that traders are expecting Bernanke will change his tune from last week and make comments that boost the greenback. The U.S. Dollar Index is up 0.21% at 82.80 at this writing.
In U.S. economic news out Tuesday, the National Association of Home Builders/Wells Fargo housing-market index rose to 57 in July from 51 in June. The July reading is the highest since January 2006.
The Labor Department said U.S. consumer price inflation rose 0.5% in June following a 0.1% rise in May. Economists expected a 0.3% June increase. Core CPI increased at annualized rate of 1.6% last month, in line with forecasts and slowing from 1.7% in May.
Meanwhile, AUD/JPY rose 0.11% to 91.80 while AUD/NZD fell 0.10% to 1.1715.