Investing.com - The Australian dollar traded lower against its U.S. rival during Tuesday’s Asian session following the release of minutes from the Reserve Bank of Australia’s most recent monetary policy meeting.
In Asian trading Tuesday, AUD/USD fell 0.17% to 0.9303. The pair was likely to find support at 0.9168, the low of September 9 and resistance at 0.9557, the high of June 19.
Although rates are already at a record low of 2.5%, still among the highest in the developed world, RBA left the door open to further rate reductions in the minutes.
"Members agreed that the bank should again neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them," said RBA in the meeting notes. "Some further decline in the exchange rate would be helpful."
RBA has previously said it views the Aussie as overvalued and that it would like to see the currency decline further.
"Lending rates had declined to historically low levels as a result, which, together with the lower -- though still high -- exchange rate, were continuing to provide a substantial degree of policy stimulus to the economy," according to the minutes. "This was most evident in the housing market, with the lags in the effect of policy meaning that earlier actions were still likely to take some time to have their full effect on demand more generally."
Since late 2011, RBA has slashed rates by 225 basis points in an effort to spur other areas of the world’s 12th-largest economy in anticipation of the end of an unprecedented mining boom.
Elsewhere, AUD/JPY fell 0.07% to 92.27 while AUD/NZD dropped 0.20% to 1.1382.
In Asian trading Tuesday, AUD/USD fell 0.17% to 0.9303. The pair was likely to find support at 0.9168, the low of September 9 and resistance at 0.9557, the high of June 19.
Although rates are already at a record low of 2.5%, still among the highest in the developed world, RBA left the door open to further rate reductions in the minutes.
"Members agreed that the bank should again neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them," said RBA in the meeting notes. "Some further decline in the exchange rate would be helpful."
RBA has previously said it views the Aussie as overvalued and that it would like to see the currency decline further.
"Lending rates had declined to historically low levels as a result, which, together with the lower -- though still high -- exchange rate, were continuing to provide a substantial degree of policy stimulus to the economy," according to the minutes. "This was most evident in the housing market, with the lags in the effect of policy meaning that earlier actions were still likely to take some time to have their full effect on demand more generally."
Since late 2011, RBA has slashed rates by 225 basis points in an effort to spur other areas of the world’s 12th-largest economy in anticipation of the end of an unprecedented mining boom.
Elsewhere, AUD/JPY fell 0.07% to 92.27 while AUD/NZD dropped 0.20% to 1.1382.