AUD drops after RBA April Meeting

The Aussie dollar drops after the RBA released the minutes of its April meeting.


The Aussie tumbled on Tuesday in Asia after the Reserve Bank of Australia released the minutes of its April meeting.

The AUD/USD pair last traded at 0.7148 dropped 0.3 percent.

The RBA anticipates inflation to stay muted for some time, but remains open to rates cut if inflation remains low and the unemployed rate ticks higher.

The central bank then noted that the stoppage in GDP development contradicts the enhancement in the labour market.

Meanwhile, the U.S. Dollar Index was unchanged at 96.570.

The dollar went under pressure previous this week as U.S. President Donald Trump renewed his criticism of the Federal Reserve over the weekend, censuring it for slowing development and damping stock prices by tightening financial policy.

“If the Fed had done its job properly, which it has not, the Stock Market would have been up 5,000 to 10,000 additional points, and GDP would have been well over 4 percent instead of 3 percent," Trump said.

However not a major directional driver, The Empire State industrial index soared 6.4 points in April to a reading of 10.10, the New York Federal Reserve said Monday. That beat estimates for a reading of 6.70.

Furthermore, comments from Federal Reserve’s officials were in focus today.


Chicago Federal Reserve President Charles Evans said he anticipated the central bank to stay on pause until the fall of 2020.

“I can see the funds rate being flat and unchanged into the fall of 2020,” he said Monday in a television interview on a news agency. “For me, that’s to help support the inflation outlook and make sure that it’s sustainable at two or a little bit above; that would be fine, too.”

In the meantime, Eric Rosengren, president of the Boston Federal Reserve, said the U.S. Fed ought to let inflation run above 2 percent “in good times.”

"My own preference would be an inflation range," because hitting the current target will only get harder with rates as low as they are, Rosengren said at Davidson College in North Carolina. "Even though we're only missing by a little bit it actually does matter if you miss by a little bit on a regular basis."

The Fed's preferred inflation measure, the core personal consumption expenses price index, is now at 1.8 percent.

The EUR/USD pair fell 0.1 percent to 1.1302 as traders await more news on Brexit.

The U.K. had initially been because of leave the EU on March 29, but the deadline has since been extended many times.

The USD/CNY pair increased 0.04 percent to 6.7061.

The USD/JPY pair slid 0.1 percent to 111.92. Japan and the U.S. kicked off trade talks in Washington on Monday, with reports proposing that the two sides hope to solve “some of the issues” rapidly.

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