The Australian dollar edged up on Tuesday after the Reserve Bank of Australia noted mounting evidence that interest rate cuts were working to stimulate the economy, though it would not rule out the chance of easing further if necessary. The Aussie initially dipped to a session low of $0.9352, from an early start at $0.9373, but quickly recovered to last trade at $0.9381. "Investors were expecting stronger jaw-boning from the RBA about the high currency but didn't get it," said Joseph Capurso, a strategist at Commonwealth Bank of Australia.
The New Zealand dollar eased to a session low of $0.8311 in Asian trade, retreating from a two-week high of $0.8407 hit on Monday. It slipped 0.3 percent to around 83.00 yen, backing off from a six-month high around 84.05 yen hit on Monday. In the minutes of its November 5 policy meeting, the RBA did caution yet again that the local currency remained painfully high and further declines would be needed to support sustainable growth. New Zealand government bonds rose, pushing yields 4 basis points lower across the curve. Australian government bond futures edged up with the three-year bond contract 2 ticks higher at 96.930. The 10-year contract also added 2 ticks, to 95.865.
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