Investing.com - The Australian dollar traded lower against its U.S. rival during Wednesday’s Asian session as traders stepped back from riskier currencies ahead of the release of minutes from the Federal Reserve’s most recent monetary policy meeting. Those minutes are due out later Wednesday.
In Asian trading Wednesday, AUD/USD fell 0.22% to 0.9051. The pair was likely to find support at 0.8907, the low of August 6 and resistance at 0.9233, Monday's high.
The Aussie also declined Tuesday following the release of meeting minutes from the Reserve Bank of Australia. "The Bank should neither close off the possibility of reducing rates further, nor signal an imminent intention to reduce rates further," said RBA in the minutes.
"The course of the exchange rate would be important. It had declined since the previous meeting, though remained high by historical standards. It was possible the exchange rate would decline further over time, which would assist in rebalancing growth in the economy," the bank said regarding its desires to see the Aussie fall further.
In addition to the Fed minutes, Aussie traders are also focusing on Australian national elections, scheduled to take place early next month.
Commentary from Australia’s ABC News said the Aussie could be poised for a post-election decline not so much because of anything happening in that country, but more because of new bull market for the greenback.
Down 16% from its 2011 highs, the Aussie could fall another 16% and trade down to 80 cents after the election, according to ABC News.
Elsewhere, AUD/JPY inched down 0.03% to 88.20 while AUD/NZD nudged up 0.02% to 1.1371.
In Asian trading Wednesday, AUD/USD fell 0.22% to 0.9051. The pair was likely to find support at 0.8907, the low of August 6 and resistance at 0.9233, Monday's high.
The Aussie also declined Tuesday following the release of meeting minutes from the Reserve Bank of Australia. "The Bank should neither close off the possibility of reducing rates further, nor signal an imminent intention to reduce rates further," said RBA in the minutes.
"The course of the exchange rate would be important. It had declined since the previous meeting, though remained high by historical standards. It was possible the exchange rate would decline further over time, which would assist in rebalancing growth in the economy," the bank said regarding its desires to see the Aussie fall further.
In addition to the Fed minutes, Aussie traders are also focusing on Australian national elections, scheduled to take place early next month.
Commentary from Australia’s ABC News said the Aussie could be poised for a post-election decline not so much because of anything happening in that country, but more because of new bull market for the greenback.
Down 16% from its 2011 highs, the Aussie could fall another 16% and trade down to 80 cents after the election, according to ABC News.
Elsewhere, AUD/JPY inched down 0.03% to 88.20 while AUD/NZD nudged up 0.02% to 1.1371.