- AUD / USD remains under constant bearish pressure on Tuesday.
- The US Dollar Index extends the rally, updating multi-month highs above 93.00.
- The release of mixed macroeconomic data from the US failed to trigger a market reaction.
The pair AUD/USD it fell during the Asian session before entering a consolidation phase around 0.7330 during European trading hours. With the dollar gaining strength in the second half of the day, the pair came under renewed downward pressure and was last seen trading at its lowest level since November at 0.7305, shedding 0.5% on the day.
RBA Minutes weigh on AUD
In the minutes of its July policy meeting, the Reserve Bank of Australia (RBA) reiterated that policymakers remain committed to maintaining highly favorable monetary conditions. In evaluating the RBA release, “we now expect the RBA to reverse its phase-down decision at its August meeting,” Goldman Sachs analysts noted. “Instead, we expect the RBA to continue QE bond purchases at a rate of A $ 5 billion per week once the current tranche ends in September, before finally starting to decline in November 2021.”
On the other hand, the dollar continues to outperform its rivals as risk aversion flows retain control of financial markets. At the moment, the US Dollar Index is up 0.33% on the day at 93.13.
The only US data on Tuesday showed that new homes rose 6m3% in June. On a negative note, the Federal Reserve Bank of Philadelphia’s non-manufacturing index fell to 53m1 in July from 59m6 in June.
On Wednesday, data from the leading Westpac index and June retail sales will be featured on Australia’s economic calendar.