Investing.com - The Australian dollar fell against its U.S. counterpart on Tuesday after the Reserve Bank of Australia released the minutes of its latest monetary policy meeting, where policy makers wouldn't rule out easing measures to stimulate the economy.
Strong retail sales out of the U.S. further weakened the Australian dollar against its U.S. cousin.
In Asian trading on Tuesday, AUD/USD hit 1.0335, down 0.20%, up from a session low of 1.0325 and off from a high of 1.0364.
The pair was likely to find support at 1.0227, Wednesday’s low, and resistance at 1.0466, the high of April 3.
"The Board had eased monetary policy late in 2011. Since then members had lowered their assessment of the pace of growth somewhat," the minutes of the Australian central bank's April 3 meetings read.
"If slower growth in demand could be expected to result in a more moderate inflation outcome, then a case could be made for a further easing of monetary policy."
Easing weakens a currency with the aim of stimulating an economy.
The U.S. dollar, meanwhile, saw some bullish news.
U.S. retail sales figures surprised on the upside, coming in much stronger at a seasonally adjusted 0.8% gain in March, according to the U.S. Commerce Department, beating expectations for a 0.3% gain.
February’s figure was revised down just slightly to a 1.0% gain from a previously reported increase of 1.1%.
Core retail sales, which are stripped of automobile sales, rose by 0.8% last month, above expectations for a 0.6% gain, after rising by 0.9% in February.
The news fueled sentiment in the U.S. that the Federal Reserve was less likely to consider monetary easing, which strengthened the dollar.
The Australian dollar was flat against the euro and down against the yen, with EUR/AUD trading at 1.2689 and AUD/JPY down 0.11% at 83.19.
Later Tuesday, the Westpac/Melbourne Institute (MI) Leading Index, a composite index based on nine economic indicators, will shed some light over the direction of the Australian economy.
Also on Tuesday, the U.S. government will release data on building permits as well as data on housing starts.
The country will also unveil data on industrial production and the capacity utilization rate, leading indicators of economic strength.
Strong retail sales out of the U.S. further weakened the Australian dollar against its U.S. cousin.
In Asian trading on Tuesday, AUD/USD hit 1.0335, down 0.20%, up from a session low of 1.0325 and off from a high of 1.0364.
The pair was likely to find support at 1.0227, Wednesday’s low, and resistance at 1.0466, the high of April 3.
"The Board had eased monetary policy late in 2011. Since then members had lowered their assessment of the pace of growth somewhat," the minutes of the Australian central bank's April 3 meetings read.
"If slower growth in demand could be expected to result in a more moderate inflation outcome, then a case could be made for a further easing of monetary policy."
Easing weakens a currency with the aim of stimulating an economy.
The U.S. dollar, meanwhile, saw some bullish news.
U.S. retail sales figures surprised on the upside, coming in much stronger at a seasonally adjusted 0.8% gain in March, according to the U.S. Commerce Department, beating expectations for a 0.3% gain.
February’s figure was revised down just slightly to a 1.0% gain from a previously reported increase of 1.1%.
Core retail sales, which are stripped of automobile sales, rose by 0.8% last month, above expectations for a 0.6% gain, after rising by 0.9% in February.
The news fueled sentiment in the U.S. that the Federal Reserve was less likely to consider monetary easing, which strengthened the dollar.
The Australian dollar was flat against the euro and down against the yen, with EUR/AUD trading at 1.2689 and AUD/JPY down 0.11% at 83.19.
Later Tuesday, the Westpac/Melbourne Institute (MI) Leading Index, a composite index based on nine economic indicators, will shed some light over the direction of the Australian economy.
Also on Tuesday, the U.S. government will release data on building permits as well as data on housing starts.
The country will also unveil data on industrial production and the capacity utilization rate, leading indicators of economic strength.