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Forex - Aussie gains after RBA minutes remark on housing prices

Published 10/19/2015, 09:21 PM
Updated 10/19/2015, 09:24 PM
Aussie gains after RBA minutes
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Investing.com - The Aussie rose further on Tuesday as investors shrugged off minutes from the central bank that showed concern over demand, but did take note of remarks on rising house prices .

AUD/USD traded at 0.7262, up 0.20%, while USD/JPY changed hands at 119.50, up 0.01%.

The Reserve Bank of Australia minutes fort he October board meeting released on Tuesday showed a mix of economic concerns about demand abroad and at home as the key guide for the outlook on rates, while also noting that risks in house prices are growing.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.10% to 94.91.

Overnight, the dollar held onto gains against the other major currencies in light trade on Monday, as sentiment on the greenback was still fragile after the release of mixed U.S. economic reports on Friday.

The preliminary reading of the University of Michigan’s consumer sentiment index came in at 92.1 on Friday, compared to forecasts of 89 and up from 87.2 in September.

But another report showed that U.S. industrial production declined 0.2% in September, pressured lower by weakness in the oil and gas sector.

Demand for the safe-haven yen strengthened after data on Monday showed that China’s economic growth slowed to 6.9% in the third quarter, down from 7% in the previous quarter. The figure is the country's slowest growth rate since 2009.

A separate report showed that Chinese industrial production rose at a year-on-year rate of 5.7% in September, disappointing expectations for a 6.0% gain.

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