$A settles after falling on dovish RBA

(Australian Associated Press)


The Australian dollar has stabilised following losses suffered when the Reserve Bank left the door open to an August rate cut.

At 1200 AEST on Wednesday, the local unit was trading at 75.05 US cents, down from 75.14 cents on Tuesday.

The currency is trading off its overnight lows as profit taking sets in following the central bank’s dovish minutes, released on Tuesday, OANDA Australia and Asia Pacific senior trader Stephen Innes said.

The RBA tipped inflation to remain weak for some time, while saying that the jobs and housing markets had been mixed lately.

But, Mr Innes said, Aussie bulls were not giving up so quickly, despite the shifting RBA rhetoric.

“We can see the momentum from the current risk rally, with US equities rising for the eighth consecutive session, is still providing a buffer for risk-sensitive currencies like the Aussie dollar,” he said.


One Australian dollar buys:

* 75.05 US cents, from 75.14 cents on Tuesday

* 79.52 Japanese yen, from 79.61 yen

* 68.15 euro cents, from 67.90 euro cents

* 106.46 New Zealand cents, from 107.00 NZ cents

* 57.36 British pence, from 56.87 pence

Government bond yields:

* CGS 5.25pct March 2019, 1.514pct, from 1.519pct

* CGS 4.25pct April 2026, 1.923pct, from 1.918pct

Sydney Futures Exchange prices:

* September 2016 10-year bond futures contract, was at 98.055 (1.945 per cent) from 98.065 (1.935 per cent) on Tuesday

* September 2016 3-year bond futures contract, at 98.550 (1.450 per cent), unchanged from Tuesday

(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)

Source: IRESS



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