AUD/USD clings to 0.6760/65 after RBA minutes
- AUD/USD shows less reaction to the RBA minutes.
- Risk tone remains choppy amid a lack of fresh catalysts.
- The US-China trade tussle confronts recently upbeat comments from the Fed policymaker.
The AUD/USD pair remains modestly changed at 0.6765 after the Reserve Bank of Australia (RBA) released minutes of its August 07 meeting on early Tuesday.
Although the Aussie central bank left its monetary policy unchanged at the August meeting, policymakers have been flashing mixed signals since then, which in turn highlighted the importance of minute details.
The RBA minute statement praises the Australia Dollar (AUD) weakness as being supportive of export, tourism while reiterating its view to consider further policy easing if needed. The statement also mentions that it is reasonable to expect an extended period of low interest rates.
Risk tone follows the general tendency of no major moves during the Asian session amid a lack of fresh catalysts. The US treasury yields previously rallied with the 10-year note offering 1.59% by the press time.
Traders show little reaction to the geopolitical tension concerning the Middle East while the US President Donald Trump seems tired of favoring China as his recent tweets concentrated on the UK and Kashmir issue.
The US President earlier opined 100 basis point Fed rate cut but market players gave more attention to the President of the Federal Reserve Bank of Boston who spread fewer worries.
While no major data is up for publishing, comments by the Federal Reserve officials and the Federal Open Market Committee (FOMC) Minutes will be closely observed to get the hints of the US central bank leaders’ major appearance at the Jackson Hole Symposium.
Unless breaking the 90-pip area between 0.6735 and 0.6825, the pair is less likely to register much momentum. However, overall weakness remains intact unless crossing 200-day simple moving average (DMA) level of 0.7060.