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Forex - AUD/USD drops to 2-week lows on RBA minutes

Published 05/20/2014, 02:52 AM
Aussie drops against greenback on RBA remarks
AUD/USD
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Investing.com - The Australian dollar dropped to two-week lows against its U.S. counterpart on Tuesday, weighed by the minutes of the Reserve Bank of Australia's most recent policy meeting, while markets eyed the minutes of the Federal Reserve's latest meeting.

AUD/USD hit 0.9265 during late Asian trade, the pair's lowest since May 5; the pair subsequently consolidated at 0.9267, retreating 0.68%.

The pair was likely to find support at 0.9228, the low of April 29 and resistance at 0.9366, Monday's high.

The Aussie came under pressure after the minutes of the RBA's May policy meeting showed that the bank plans to hold interest rates at recors lows for an extended period of time, seeing as "overall growth in coming quarters is likely to be below trend."

Separately, the Conference Board said its leading index for Australia was flat in March, after a 0.2% rise in February, whose figure was revised down from a previously estimated 0.3% increase.

Meanwhile, sentiment on the greenback remained vulnerable as investors eyed the minutes from the Fed’s latest monetary policy meeting on Wednesday for further indications on the central bank's view of the economy.

Recent U.S. economic reports indicating that the recovery remains uneven have weighed on U.S. Treasury yields, pressuring the dollar lower.

The Aussie was lower against the euro, with EUR/AUD gaining 0.59% to 1.4779.

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