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Forex - AUD/USD higher after RBA minutes, Fed supports

Published 11/19/2013, 02:50 AM
AUD/USD
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EUR/AUD
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Investing.com - The Australian dollar was higher against its U.S. counterpart on Tuesday, following the minutes of the Reserve Bank of Australia's latest policy meeting, as expectations for the Federal Reserve's stimulus program to remain unchanged until well into next year pressured the greenback.

AUD/USD hit 0.9402 during late Asian trade, the session high; the pair subsequently consolidated at 0.9409, rising 0.35%.

The pair was likely to find support at 0.9306, the low of November 15 and resistance at 0.9480, the high of November 8.

The RBA said there was "mounting evidence" rate cuts were working although it retained the option of loosening policy further to support growth, adding that the Aussie was still "uncomfortably high".

Separately, the Conference Board said that its leading index for Australia rose 0.3% in September, after a 0.2% fall the previous month.

Meanwhile, the greenback remained under pressure after dovish comments by Fed Chairwoman nominee Janet Yellen last week were seen as cementing the view that the bank will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.

However, Federal Reserve Bank of New York President William C. Dudley said Monday he was growing more hopeful that the economy is improving, and added that the fiscal uncertainties that acted as a drag on growth are likely to abate in the coming months.

Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.

The Aussie was also higher against the euro with EUR/AUD slipping 0.25%, to hit 1.4366.

Later in the day, the U.S. was to release data on the employment cost index.


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