The Australian dollar demonstrated mixed performance after the release of RBA policy minutes earlier during the Tuesday’s trading session. The currency rallied against the US dollar (though has trimmed its gains as of now) but fell against the euro and the Japanese yen.
The Reserve Bank of Australia released minutes of its August meeting, during which it had performed an interest rate cut, today. Among concerns voiced by Australian policy makers was the problem of low inflation:
In coming to their policy decision, members noted that the recent CPI data had confirmed that inflation was likely to remain low for some time.
Overseas, China was a big source of worries:
Growth in China had continued to moderate, which was having noticeable effects on other economies with large trade exposures to China.
AUD/USD was up from 0.7672 to 0.7694 as of 16:18 GMT today after hitting the daily high of 0.7738 earlier. EUR/AUD rallied from 1.4569 to 1.4649, trading near the highest level in a week and half.
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