The Australian dollar dived to a one-week trough Tuesday, as the Reserve Bank of Australia stipulated the central bank could implement more interest rate cuts, if necessary.
The minutes of May meeting stated Australia’s central bank clarified the insufficiency of guidance on rates, saying it won’t rule out future moves.
The Aussie stood at 70.54 euro cents from Monday’s 70.20 euro cents, and 79.67 US cents from 80.12 US cents.
I was surprised by the market’s response to the RBA minutes… “the RBA still has the potential to cut rates if the need arises,” said Steven Dooley, Currency Strategist at Western Union Business Solutions.
Meanwhile, traders will now look forward to Federal Reserve’s minutes of its latest policy meeting.
The material has been provided by InstaForex Company – www.instaforex.com