Category: Forex
The Aussie held slightly weaker in early Asia on Tuesday ahead of central bank minutes while investors also awaited the latest monetary review from Japan.AUD/USD traded at 0.7513, down 0.03%, while USD/JPY changed hands at 113.80, down 0.03%.The Reserve Bank of Australia will release monetary policy meeting minutes from its March review at which it held steady at a record low 2.0%.As well, the Bank of Japan is slated to announce its latest review of monetary policy with investors expecting no changes to the quantitative target of ¥80 trillion.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted up 0.39% to 96.60.Overnight, the dollar remained broadly higher against the other major currencies on Monday, as investors continued to focus on the Federal Reserve’s upcoming policy meeting this week.The single currency remained under pressure after the European Central Bank cut interest rates across the euro zone to new record lows and boosted its quantitative easing program last Thursday.The ECB cut its benchmark interest rate to a record-low of zero from 0.05% and boosted its quantitative easing program by €20 billion per month to €80 billion, starting in April.The Fed is not widely expected to raise interest rates at the conclusion of its meeting on Wednesday, given recent signs of weakness in the global economy.But the U.S. central bank was likely to signal that rates will rise fairly soon as long as U.S. inflation and jobs continue to strengthen.
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