RTTN:Australian Dollar Climbs As RBA Sees Current Rate Appropriate For Now
The Australian dollar strengthened against other major currencies in the Asian morning session on Tuesday, as minutes from the Reserve Bank of Australia's latest monetary policy meeting showed that the board felt that its current stance of monetary policy is appropriate for the time being.
The country's economy is showing signs of improvement - but not quite as much as expected, minutes from the board's July 2 meeting revealed today.
The RA said that accommodating inflation may provide the bank with the opportunity to implement further easing measures.
At the meeting, the RBA opted to keep the benchmark cash rate unchanged at a record-low of 2.75 percent for a second straight month.
The last policy change was in May, when the cash rate was cut by a quarter-point to the current level.
Upbeat second quarter earnings result from Citigroup has lifted sentiment in Asia. The investor concerns of Federal Reserve tapering its easing program got a twist following the release of weaker-than-expected retail sales data from the U.S.
The aussie reached a 4-day high of 0.9167 against the greenback, up by 1.3 percent for the week. If the aussie extends its bull run, it may seek resistance around the 0.925 level.
The aussie hit 91.51 against the yen, its strongest level since July 11. On the upside, the next resistance for the aussie lies at 92.00 zone.
The aussie climbed to a 4-day high of 1.4252 against the European currency, appreciating almost 1.6 percent from nearly 3-year low of 1.4478 set last week. The next resistance for the aussie may be eyed around the 1.415 level.
The aussie firmed to 5-day highs of 1.1723 against the NZ dollar and 0.9573 against the loonie, compared to yesterday's closing value of 1.1649 and 0.9495, respectively. The aussie may seek next upside target around 1.185 against the kiwi and 0.965 against the loonie.
Consumer prices in New Zealand were up 0.7 percent on year in the second quarter of 2013, Statistics New Zealand said today.
That missed forecasts for an increase of 0.8 percent and eased from the 0.9 percent gain in the previous quarter.
The Eurozone final CPI for June, trade data for May and German ZEW economic sentiment index for July are due in the European session.
From the U.S., CPI and industrial production for June, NAHB housing market index for July are set for release in the New York session.
