Investing.com - The Australian dollar traded lower against its U.S. rival during Tuesday’s Asian session ahead of another interest rate decision by the Reserve Bank of Australia later Tuesday.
In Asian trading Tuesday, AUD/USD fell 0.26% to 0.9742. The pair was likely to find support at 0.9549, the low of May 31 and resistance at 0.9697, the high of May 30.
After RBA lowered interest rates by 25 basis to a record low of 2.75% last month, most traders are not expecting another rate cut Tuesday. Inflation in Australia, the world’s 12th-largest economy, ticked up 0.2% last month, perhaps giving RBA pause about another immediate rate cut.
Still, JP Morgan expects RBA to trim rates by another 50 basis points over the next six months and there are some economists that see room for RBA to again trim rates in the near-term because even though AUD/USD has recently fallen, it has not fallen that much in the eyes of some.
Monday’s data points out of Australia could be taken into consideration by the central bank. Official data showed that retail sales in Australian data rose 0.2% in April, less than the expected 0.3% increase, after a 0.4% decline the previous month.
In addition, data showed that job advertizements in Australia fell 2.4% in May, after a 1.7% decline the previous month.
A separate report showed that Australian company operating profits rose 3% in the first quarter, beating expectations for a 1.5% rise, after a 0.5% fall in the previous quarter.
With the mining boom ending and Australia manufacturing sector still plagued by the strong dollar, a rate cut could be a matter if when, not if.
Elsewhere, AUD/JPY fell 0.17% to 97.03 while AUD/NZD inched down 0.05% to 1.2066.
In Asian trading Tuesday, AUD/USD fell 0.26% to 0.9742. The pair was likely to find support at 0.9549, the low of May 31 and resistance at 0.9697, the high of May 30.
After RBA lowered interest rates by 25 basis to a record low of 2.75% last month, most traders are not expecting another rate cut Tuesday. Inflation in Australia, the world’s 12th-largest economy, ticked up 0.2% last month, perhaps giving RBA pause about another immediate rate cut.
Still, JP Morgan expects RBA to trim rates by another 50 basis points over the next six months and there are some economists that see room for RBA to again trim rates in the near-term because even though AUD/USD has recently fallen, it has not fallen that much in the eyes of some.
Monday’s data points out of Australia could be taken into consideration by the central bank. Official data showed that retail sales in Australian data rose 0.2% in April, less than the expected 0.3% increase, after a 0.4% decline the previous month.
In addition, data showed that job advertizements in Australia fell 2.4% in May, after a 1.7% decline the previous month.
A separate report showed that Australian company operating profits rose 3% in the first quarter, beating expectations for a 1.5% rise, after a 0.5% fall in the previous quarter.
With the mining boom ending and Australia manufacturing sector still plagued by the strong dollar, a rate cut could be a matter if when, not if.
Elsewhere, AUD/JPY fell 0.17% to 97.03 while AUD/NZD inched down 0.05% to 1.2066.