Forex: Reserve Bank of Australia meeting minutes

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The Reserve Bank of Australia (RBA) released minutes of its April monetary policy meeting. The central bank has kept the cash rate steady at 4.75 per cent since November last year. The minutes from the April board showed that the country stands firm and focused on the challenge of providing a mining boom while attempting to provide for minimum inflation.

 

The AUDUSD has been slipping this far throughout the Asian session, dropping by some 40+ pips from its open to around 1.0460 as the Aussie moves further away from the recent all time high of 1.0581. The initial wave of selling began in yesterday’s European trading session when the AUDUSD pair dipped from the opening level of 1.0561 down by over 100 pips to a five-day low at 1.0453 in the US session. The Aussie soon recovered in yesterday’s late US session to come back up towards the 1.0515 levels.

 

Standard & Poor’s Ratings Service revised down its long-term outlook for the United States’ sovereign debt from Stable to “Negative” due to risks from the country’s growing deficit. The news affected investor risk appetite which suffered a blow and led to the Australian dollar losing value.