Investing.com - The Australian dollar was steady against its U.S. rival in Asian trading Tuesday as traders await monetary policy news from the Reserve Bank of Australia.
In Asian trading Tuesday, AUD/USD inched down 0.01% to 0.8929. The pair was likely to find support at 0.8848 and resistance at 0.92072, the high of July 31.
Earlier Tuesday, the Australian Bureau of Statistics said that Australia’s home price index rose 2.40% in the second-quarter compared with a first-quarter gain of 0.8%. Analysts expected a second-quarter increase of 1%.
In another report, the Australian Bureau of Statistics said that Australia’s trade balance rose to AUD600 million in July from AUD510 million in June. The June reading was revised lower from AUD670 million. Analysts expected Australia’s July trade balance to balance to be AUD800 million.
Last week, RBA Governor Glenn Stevens said benign inflation data in Australia gives the central bank room to consider further rate cuts even thought Australia’s benchmark interest rate is already at a record low of 2.75%. That is still one of the highest levels in the developed world.
The Aussie could get a lift if RBA opts against cutting rates at this meeting, but most traders seem to agree that even if the central bank does not pare rates Tuesday, it is only a matter of time before does so again. In fact some traders expect RBA could go down to 2.25% in the next 12 months and that at least one more rate cut before the end of 2013 is a foregone conclusion.
If the Aussie can reclaim the 0.9000 level against the greenback, that could spark some short covering to take the pair to 0.9200 or 0.9300. However, a rate cut Tuesday could set the downtrodden Aussie on a path to 0.8700.
Elsewhere, AUD/JPY fell 0.39% to 87.43 while AUD/NZD dropped 0.24% to 1.1389.
In Asian trading Tuesday, AUD/USD inched down 0.01% to 0.8929. The pair was likely to find support at 0.8848 and resistance at 0.92072, the high of July 31.
Earlier Tuesday, the Australian Bureau of Statistics said that Australia’s home price index rose 2.40% in the second-quarter compared with a first-quarter gain of 0.8%. Analysts expected a second-quarter increase of 1%.
In another report, the Australian Bureau of Statistics said that Australia’s trade balance rose to AUD600 million in July from AUD510 million in June. The June reading was revised lower from AUD670 million. Analysts expected Australia’s July trade balance to balance to be AUD800 million.
Last week, RBA Governor Glenn Stevens said benign inflation data in Australia gives the central bank room to consider further rate cuts even thought Australia’s benchmark interest rate is already at a record low of 2.75%. That is still one of the highest levels in the developed world.
The Aussie could get a lift if RBA opts against cutting rates at this meeting, but most traders seem to agree that even if the central bank does not pare rates Tuesday, it is only a matter of time before does so again. In fact some traders expect RBA could go down to 2.25% in the next 12 months and that at least one more rate cut before the end of 2013 is a foregone conclusion.
If the Aussie can reclaim the 0.9000 level against the greenback, that could spark some short covering to take the pair to 0.9200 or 0.9300. However, a rate cut Tuesday could set the downtrodden Aussie on a path to 0.8700.
Elsewhere, AUD/JPY fell 0.39% to 87.43 while AUD/NZD dropped 0.24% to 1.1389.