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Forex - AUD/USD rises but remains close to 4-year lows

Published 12/16/2014, 02:50 AM
Aussie gains mild ground vs. greenback after RBA minutes
AUD/USD
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Investing.com - The Australian dollar rose against its U.S. counterpart on Tuesday, but remained within close distance of a four-year low after the minutes of the Reserve Bank of Australia reiterated that borrowing costs will remain unchanged for some time.

AUD/USD hit 0.8245 during late Asian trade, the session high; the pair subsequently consolidated at 0.8233, adding 0.26%.

The pair was likely to find support at 0.8198, Monday's low and a four-year low and resistance at 0.8303, the high of December 12.

In the minutes of the RBA's December policy meeting, board members said they "noted that market expectations implied some chance of an easing of policy during 2015."

The report then added that "members considered that the most prudent course was likely to be a period of stability in interest rates."

Elsewhere, data showed that the China HSBC Flash Manufacturing Purchasing Managers' Index swung into contraction territory at 49.5 this month from a reading of 50.0 in November, confounding expectations for a fall to 49.9.

China is Australia's biggest export partner.

Markets were also jittery ahead of Wednesday's Federal Reserve policy statement, as ongoing speculation over the prospects for a U.S. rate hike next year fuelled expectations that the U.S. central bank could adjust its forward guidance.

The Aussie was higher against the euro, with EUR/AUD slipping 0.12% to 1.5128.

Later in the day, the U.S. was to publish reports on building permits and housing starts.

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