- AUD / USD remains under constant bearish pressure on Tuesday.
- The US dollar index extends the rally and renews its multi-month highs above 93.00.
- The mixed macroeconomic data releases from the United States did not trigger a market reaction.
AUD / USD declined slightly during the Asian session before entering a consolidation phase around 0.7330 during European trading hours. With the greenback continuing to strengthen in the second half of the day, the pair took further bearish pressure and was last seen trading at its lowest level since November at 0.7305, losing 0.5% on on a daily basis.
RBA publication weighs on AUD
In the minutes of its July policy meeting, the Reserve Bank of Australia (RBA) reiterated that policymakers remain committed to maintaining very favorable monetary conditions. In evaluating the RBA’s publication, “we now expect the RBA to reverse its cut decision at its August meeting,” Goldman Sachs analysts noted. “Instead, we expect the RBA to continue buying QE bonds at A $ 5bn / week after the current tranche ends in September, before finally starting to decline in November 2021. . “
On the other hand, the greenback continues to outperform its rivals as risk aversion flows keep financial markets in check. Currently, the US dollar index is up 0.33% on the day to 93.13.
Data from the United States alone showed on Tuesday that housing starts rose 6.3% in June. On a negative note, the Federal Reserve Bank of Philadelphia’s non-manufacturing index edged down to 53.1 in July from 59.6 in June.
On Wednesday, data from the Westpac Leading Index and June retail sales will appear in Australia’s economic record.