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Australian Dollar Rose While US Dollar Slides Lower

May 7, 2019 | Tuesday

Forex

   

On Tuesday, the Australian dollar distinctly rose upon the country's central bank kept rates at a low record. That rolls speculation that the central bank may ease policy after a below-par inflation reading.

The Australian dollar went up about 0.7 percent amounting to $0.7035 following the Reserve Bank of Australia (RBA) kept the cash rate at 1.50 percent. However, before the policy decision, a few majorities of economist Reuters polled expects the central bank to remain rates steady. That even calls for easing developed louder upon weak and disappointingly first-quarter inflation.

Meanwhile, as the RBA held the policy unchanged, it opens a wider door for future cuts whenever the jobs market fails to push unemployment lower. At the same time, the retailers suffer its worst quarter from the previous seven years.

As of now, the Aussie was up about 0.5 percent against the yen (77.82).

In the currency market, the United States dollar steadies to familiar ranges going against its major rivals. That even considering the comments from top U.S. trade officials regarding China moving away from trade-related responsibilities pressed on U.S. stock futures and bond yields.

Moreover, the dollar index going against its basket of six peers was down by 0.1 percent at a 97.409 and ending the last session almost flat.

According to Daiwa Securities senior currency strategist, Yukio Ishizuki, On China's view, the break up of talks aren't "really favorable for the domestic economy." Ishizuki believes that they aim to have a "deal" in any way as possible. He added that even if there are expectations for Beijing and Washington to reach their trade deal this week, the talks are to take a bit more time.

On Monday, Robert Lighthizer, the United States Trade Representative and Treasury Secretary Steven Mnuchin said China moved far from the commitments set during the previous negotiations.

   

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