On Tuesday Australian dollar lost ground against its US counterpart after Reserve Bank of Australia most recent meeting.
AUD/CAD pair fell to 0.9499 during late Asian trade, currently the session low, after which consolidation followed at 0.9513. Support was likely at June 13th low, 0.9430, while resistance was to be met at June 4th high, 0.9760.
According to Australias central bank statement, the national currency was expected to further its value drop, as export prices were still decreasing. Future cuts in interest rates were possible. Reserve Bank of Australia announced that inflation outlook might be favorable for more easing. The bank decreased the base interest rate by 2% in the past 20 months, leaving it at a record low level of 2.75% after its meeting on June 4th.
“In China, economic activity appeared to be expanding at a steady pace, driven by strong investment growth, with both infrastructure and real estate investment continuing to grow strongly. Conditions in the residential property market remained buoyant in April, although members observed that recently announced controls could weigh on activity in coming months, depending on how widely and strictly they were enforced,” RBA said in its statement. Earlier today China’s National Bureau of Statistics said new home prices in the country rose by 6% in May. This data could significantly diminish chances of an interest rate cut in China, which is currently trying to overcome a property bubble.
Meanwhile, Australian dollar was lower against the kiwi as well, with AUD/NZD slipping by 0.3% to 1.1929.
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