Aussie drops as RBA suggests probable scope for easing
On Tuesday, the Australian dollar headed south following the minutes from the Reserve Bank of Australia’s July gathering. The minutes dropped a hint for further monetary easing.
The currency pair AUD/USD was worth 0.7528, descending 0.83%. Meanwhile, USD/JPY sagged 0.23% to 105.92. As for GBP/USD, this currency pair slumped 0.23%, hitting 1.3226.
The U.S. dollar index, traditionally measuring the greenback’s strength against six key currencies, last traded at 96.56.
Overnight, the British pound edged up to the day’s peaks on Monday after Martin Weale, Bank of England policymaker told he wasn’t sure if he would back up an interest rate decrease at the major bank’s August gathering.
Weale told he would require seeing a more persuasive evidence of the impact of Britain’s vote to abandon the European Union before backing a rate cut at next month’s gathering.
Uncertainty points to the argument that we need to wait for firmer evidence before getting down to any policy change, Martin Weale adds.