SYDNEY: The Australian dollar edged higher on the release of the minutes of the Reserve Bank of Australia’s April board meeting.
At 11.28am (AEST), prior to the release of the minutes the Australian dollar was trading at US77.11c.
By 11.32am (AEST) the currency had spiked to as high as US77.16c.
The RBA minutes showed the central bank was considering another interest rate cut, but will wait for more economic data between now and its May board meeting before making the decision.
Overnight the dollar was hit by jawboning from RBA Governor Glenn Stevens, which saw it lose US1c and touch as low as US77.07c, well below Monday’s one-month high.
The local currency began its descent on Monday evening as share markets in the Asian region tumbled and iron ore prices fell, Westpac senior currency strategist Sean Callow said.
A strengthening US dollar also applied some pressure on the Aussie, along with comments from Glenn Stevens in New York flagging the possibility of further rate cuts, Mr Callow said.
“There was a bit of a negative vibe for the Australian dollar before Stevens’ speech last night, and his speech didn’t do anything to discourage that,” Mr Callow said.
Westpac expects another rate cut in May.
