Investing.com - The Aussie trimmed earlier gains in Asia on Tuesday after central bank minutes showed inflation risks balanced, hinting at a steady policy stance going forward.
AUD/USD traded at 0.7564, up 0.11%, while USD/JPY changed hands at 108.16, down 0.23%.
The Reserve Bank of Australia released the minutes of its November meeting at which it left the cash rate at a record low 1.50% and said said its inflation outlook is more balanced as it eyes policy at home and abroad with an eye on trade and employment.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.11% at 99.92, dipping below levels just above 100 reached on Monday.
Overnight, the dollar extended gains to hit an eleven-month high against the other majors currencies on Monday, as optimism over the economic implications of a Donald Trump presidency continued to boost demand for the greenback.
The dollar continued to strengthen amid hopes that increased fiscal spending and tax cuts under a Trump administration will bolster economic growth and inflation.
Expectations for higher U.S. interest rates also remained intact amid optimism that a pick-up in growth will allow the Federal Reserve to tighten borrowing costs.