The Australian dollar was trading below the opening level today as traders are waiting for tomorrow’s monetary policy decision from the Reserve Bank of Australia. Prospects for an interest rate cut hurt the attractiveness of the Aussie.
The RBA will conduct its policy meeting during the early Tuesday’s session, and many analysts believe that the central bank will reduce its main interest rate by 25 basis points to a new historical low of 2 percent. Yet others argue that policy makers did not signal about possibility of a rate cut in the previous statements. The uncertainty drove the Australian currency lower but limited losses at the same time.
AUD/USD dropped from 0.7799 to 0.7769 as of 18:14 GMT today. AUD/JPY ticked down from 93.41 to 93.33 and touched the low of 92.99 intraday.
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