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Forex - AUD/USD treads water before minutes release, NZD/USD weakens

Published 11/18/2013, 05:21 PM
Updated 11/18/2013, 05:53 PM
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Investing.com - The Australian dollar traded flat on Tuesday ahead of minutes from the Reserve Bank of Australia's November board meeting expected to shed light on whether a slim easing bias remains intact.

AUD/USD traded at 0.93760, down 01%, in a range of 0.9376 - 0.9378, ahead of the minutes due at 1130 local time (0030 GMT). The minutes could signal that the board is comfortable to wait and see the effect of a record low cash rate of 2.5% work through the economy, or concern that a shift from resources-led investment to housing is not happening quickly enough.

The currency has also received support on better prospects for economic reforms in China for foreign investment following a plan released at the weekend by top leadership. China is a top destination for Australian exports such as iron ore.

NZD/USD is bid slightly lower at 0.8328, down 0.05%, still easing off a 0.8402 high traded overnight.

USD/JPY traded at 99.98, down 0.01%, and trading in a range of 99.96 - 100.01 with the open of the Nikkei awaited for signs of profit taking after more than a week of steady gains.

Overnight, the dollar traded mixed to lower against most major currencies amid ongoing sentiments the Federal Reserve will leave its ultra-loose monetary policies in place into early 2014, though upbeat comments from Bank of New York President William C. Dudley cushioned the greenback's losses.

"While growth in 2013 has been disappointing, I believe a good case can be made that the pace of growth will pick up some in 2014 and then somewhat more in 2015. The private sector of the economy should continue to heal, while the amount of fiscal drag should subside," Dudley said in prepared remarks of a speech he delivered at Queens College, Flushing, New York.

Still, Dudley gave no real indication as to when bond purchases may taper, which kept the greenback in negative territory.
 
Elsewhere, National Association of Home Builders/Wells Fargo Housing Market Index came in unchanged in November at 54, missing analysts' calls for an uptick to 55 this month.

In Europe, data released Monday showed that the euro zone's surplus widened to EUR13.1 billion in September from EUR8.6 billion a year earlier. The report said exports rose 3% on a year-over-year basis, while imports were flat.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, traded at 80.78, down 0.01%

On Tuesday, the U.S. is to release data on the employment cost index, an important inflation indicator.


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