Australian Dollar Recovers After RBA Keeps Key Rate Unchanged
June 18 2024 - 4:02AM
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The Australian dollar recovered from recent lows against other
major currencies in the Asian session on Tuesday, after the Reserve
Bank of Australia maintained its interest rates at a 12-year high
for a fifth straight meeting.
The policy board of the RBA, led by Governor Michele Bullock,
decided to hold the cash rate target at 4.35 percent.
Inflation is easing but has been doing so more slowly than
previously expected and it remains high, the central bank said.
"The path of interest rates that will best ensure that inflation
returns to target in a reasonable timeframe remains uncertain and
the Board is not ruling anything in or out," the RBA said.
Asian shares gained after a rally in several technology shares
drove Wall Street to another record high overnight.
The dollar took a breather ahead of key U.S. retail sales and
business activity data as well as speeches from several Federal
Reserve officials later on Tuesday. Gold was little changed while
oil consolidated recent gains.
In the Asian trading today, the Australian dollar rose to more
than 2-week high of 1.0844 against the NZ dollar, from an early low
of 1.0782. The aussie may test resistance near the 1.09 region.
Against the U.S. dollar, the Canadian dollar and the yen, the
aussie advanced to 4-day highs of 0.6628, 0.9110 and 104.78 from
early lows of 0.6601, 0.9071 and 104.03, respectively. If the
aussie extends its uptrend, it is likely to find resistance around
0.68 against the greenback, 0.93 against the loonie and 105 against
the yen.
Moving away from an early low of 1.6176 against the euro, the
aussie edged up to 1.6246. On the upside, 1.60 is seen as the next
resistance levels for the aussie.
Germany's ZEW economic sentiment survey results for June and
Eurozone final inflation data for May were released in the European
session.
In the New York session, U.S. retail sales for May, U.S.
industrial and manufacturing production, U.S. Redbook report and
business inventories for April are slated for release.
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