The Australian Dollar fell against the US Dollar (AUD/USD) on Tuesday after the release of dovish Reserve Bank of Australia (RBA) meeting minutes. Just ahead of the release, the AUD/USD exchange rate had hit a one-week high in a bounce back from 20-month lows.
RBA Minutes See Interest Rates Remain Low for Longer
The RBA minutes commented that impressive US growth could create Aussie Dollar softness, and trade policies could also hinder the AUD exchange rate. Policymakers wrote: ‘the direction of international trade policy in the United States continued to be a source of uncertainty for the global outlook.’ The central bank also suggested that while its forecasts suggested job creation would be higher in the last half of 2018, it wasn’t cause enough for policymakers to consider adjusting monetary policy. Current market expectations are for a possible interest rate hike in August 2019.
Meanwhile, New Zealand Credit Card Spending declined in July, falling from a positively revised 5.7% on the year to 3.2%. The month alone noted a -1.1% contraction, while the June reading was negatively revised to 2.1%.
GBP/NZD, USD/AUD, GBP/USD Exchange Rate Forecast
There will be several pieces of UK data out today, including Public Finances and Public Sector Net Borrowing numbers, before the Confederation of British Industry releases its Trends Total Orders and Trends Selling Prices stats. Much later this evening and in Wednesday’s Trans Tasman session, New Zealand’s Retail Sales numbers will be published.
Wednesday will offer markets some insight into the Australian economy when Westpac’s Leading Index makes its way onto the scene. Reserve Bank of Australia representative Guy Debelle will also be speaking in Brisbane which might offer the Aussie Dollar some opportunity to move.
Markets are looking towards Friday’s Jackson Hole Symposium hosted by the Federal Reserve for more central bank comments and the possibility of market movement.
The US Dollar to Australian Dollar (USD/AUD) exchange rate is trending at 1.3594. The Pound to New Zealand Dollar (GBP/NZD) exchange rate is trading at 1.9251. The Pound to US Dollar (GBP/USD) exchange rate is trending in the region of 1.2838.