FX News – September 17: Aussie Falls Post-RBA Meeting’s Minutes

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The AUD/USD pair fell early in today's trading as the Reserve Bank of Australia (RBA) released the minutes of its meeting last 3 September. According to the minutes, the members agreed that the RBA should, "again neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them." This meant that the Reserve Bank might still cut rates further, but not in the near future.

Other key quotes from the minutes included that China's economy is growing and might continue to grow in line with expectations of 7.5% for the rest of the year. In addition, the report noted that there was a gradual increase in unemployment in Australia, and that the country's GDP has grown 'little below trend' in the June quarter. Mining investment, as everyone already knows, is expected to decline in the coming years, while other sectors remain subdued. Finally, the RBA still sees the aussie as overvalued, although it has dropped in value over the past few months.

The AUD/USD pair has opened at a low note in today's Asian session at 0.9322, a far cry from yesterday's session wherein it broke through the 0.9380 level. The pair has dropped further over the past few hours and is currently trading at 0.9290, with initial resistance seen at 0.9356, followed by 0.9379. Meanwhile, initial support is at 0.9266, followed by 0.9243.

The same story was true for the AUD/JPY pair, which declined after the release of the RBA meeting's minutes. After peaking at 92.65, it went to a steady drop and is currently trading at 92.22. This has somehow erased the gains the pair had during yesterday's session wherein in the pair peaked at just below 92.80.

Initial resistance for the AUD/JPY pair is at 92.99, followed by 93.23. Meanwhile, initial support is at 92.15, followed by 91.92.

By FX Strategy Team, Published on 17th of September 2013
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