Forex - AUD/USD rises but gains capped after RBA minutes

Published 04/16/2013, 02:44 AM
AUD/USD
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EUR/AUD
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Investing.com - The Australian dollar rose against its U.S. counterpart on Tuesday, but the Aussie's gains were capped as the minutes of the Reserve Bank of Australia's latest policy meeting showed there is still room to cut rates.

AUD/USD hit 1.0379 during late Asian trade, the session high; the pair subsequently consolidated at 1.0376, climbing 0.63%.

The pair was likely to find support at 1.0291, Monday's low and resistance at 1.0424, the high of April 8.

In the minutes of the RBA's April 2 policy meeting, policymakers reiterated that the inflation outlook gives the banck room to reduce borrowing costs to a record, even as earlier cuts still boost demand.

Meanwhile, sentiment remained fragile after official data showed that the Chinese economy expanded by 7.7% year-on-year in the three months to March, down from 7.9% in the fourth quarter and undershooting expectations for 8.0% growth.

Separate reports showed that Chinese industrial production also came in below expectations, while retail sales rose slightly more than forecast.

China is Australia's biggest export partner.

The Aussie was higher against the euro with EUR/AUD shedding 0.33%, to hit 1.2602.

Later in te day, the U.S. was to publish official data on building permits and on housing starts, followed by reports on consumer inflation, industrial production and the capacity utilization rate.


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