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Forex - AUD/USD falls near 6-month lows after RBA minutes

Published 09/16/2014, 02:49 AM
Updated 09/16/2014, 02:49 AM
Aussie loses ground vs. greenback, RBA comments weigh

Investing.com - The Australian dollar fell against its U.S. counterpart on Tuesday, to trade close to six-month lows after the release of the Reserve Bank of Australia's latest meeting minutes, while demand for the greenback remained supported ahead of the Federal Reserve's upcoming statement.

AUD/USD hit 0.8998 during late Asian trade, the session low; the pair subsequently consolidated at 0.8992, shedding 0.39%.

The pair was likely to find support at 0.8981, Monday's low and a six-month trough and resistance at 0.9108, the high of September 12.

In the minutes of its September policy meeting, the RBA reiterated its decision to keep interest rates on hold for an extended period of time and added that the exchange rate remains "above most estimates of its fundamental value."

The Australian dollar came under further pressure after RBA official Christopher Kent said that a decline in the nation's currency would support demand for local producers.

Mr. Kent was speaking at the Bloomberg Summit in Sydney.

Meanwhile, demand for the greenback remained supported by expectations for an early hike in U.S. interest rates.

The Fed was expected to cut its asset purchase program by another $10 billion at its upcoming policy meeting on Wednesday, which would keep it on track for winding up the program in October, and to start raising interest rates sometime in mid-2015.

The Aussie was lower against the euro, with EUR/AUD rising 0.27% to 1.4372.

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