Investing.com - The Aussie gained on Tuesday after minutes of the central bank's November board meeting noted some scope for further easing, though with overall conditions accomodative.
AUD/USD traded at 0.7102, up 0.07%, while USD/JPY changed hands at 123.26, up 0.06%.
The inflation outlook provides further room for easing if needed, the Reserve Bank of Australia said Tuesday in the minutes of its November board meeting at which it held rates steady at a record low 2%. Earlier, Reserve Bank of Australia Assistant Governor Christopher Kent said that weak commodity prices and a slower China make predicting the next turns of the economic cycle difficult.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was flat at 99.48.
Overnight, the dollar remained broadly higher against the other major currencies in quiet trade on Monday, despite the release of downbeat manufacturing activity data from new York, as growing expectations for a December rate hike by the Federal Reserve continued to support the greenback.
The Federal Reserve Bank of New York reported that its general business conditions index improved to -10.7 this month from a reading of -11.4 in October. Analysts had expected the index to rise to -6.0 in November.
Demand for safe haven assets was boosted after attackers killed more than 130 people in Paris on Friday, prompting retaliatory French air strikes against Islamic State in Syria.
The single currency was already under pressure from heightened expectations that the European Central Bank will enlarge its stimulus program, aimed at boosting price growth in the euro area, before the years end.
The greenback remained broadly supported after Fed Vice-Chair Stanley Fischer said Thursday that it "may be appropriate" for the Fed to begin raising rates next month.