Aussie Loses Ground Post Dovish RBA Minutes


Earlier today, the Reserve Bank of Australia released the minutes of the latest monetary policy meeting which implied a dovish tone and drove down the Australian dollar against other major currencies. The bank believes that there was no strong case until now to change interest rates. However, the committee believes that it would be appropriate to lower interest rates if inflation remained low and the unemployment rate inched higher. The AUDUSD dipped to a low of $0.7140, and the EURAUD edged higher towards 1.5825.


The Canadian dollar tumbled against rivals following the release of the Bank of Canada first quarter Business survey. The survey showed that the economic outlook is weakening. The trade protectionism and political uncertainty are hurting the global economy. Moreover, the drop in economic activity in the United States due to the ongoing trade war between China and the United States negatively affected the Canadian economy. The survey reduced the chances of further tightening measures by the Bank of Canada. The USDCAD rose to a high three-week high of 1.3402, and the EURCAD rallied towards 1.5155.


The dollar index which measures the greenback against a basket of major currencies finished almost flat as investors await fresh fundamental drivers. DXY rebounded from a low of 96.79 to settle at 96.94. The NY Empire State Manufacturing Index came in at 10.10 versus an expectation of 6.70. Market participants await the release of the Industrial Production later today. The US 10-year yields held earlier gains and settled at 2.56%, the USDJPY slid to 111.85, while the EURUSD edged higher to $1.1320.


Gold prices drifted lower as investors were seen jumping into riskier assets amid optimism over trade. The gold ounce found support near a two-week low of $1282. The silver ounce fell sharply during the Asian session to a four-month low of $14.70 but managed to recover to $14.95.


Oil prices settled lower amid growing concerns over the global economic growth. The West Texas Intermediate crude futures dropped to a one-week low of $63.01, and Brent futures slipped to a low of $71.23. The American Petroleum Institute will report the weekly crude oil stock later today.

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