The US Dollar steadied against its key rivals during London trade on Tuesday, putting an end to three days of straight losses for the greenback. FX traders are looking ahead to the release on Thursday of the Federal Reserve Bank policy meeting minutes from last month. The FOMC has lowered rates last month and investors are anxious to see the rationale for the decision and whether or not it might suggest more rate cuts will be forthcoming in 2020. There is also still some wariness for the greenback centered around the lack of progress on the trade talks between the US and China; earlier hopes of an inked deal have already disappeared.
The EUR/USD was trading at $1.1073, up 0.0235% as of 11:10 am, while the pair has ranged from a low of $1.10620 to a peak of $1.10820. Against the Pound Sterling, the GBP/USD was trading lower at $1.2932, down 0.146%, off the session trough of $1.29261.
Aussie Dollar Rises After RBA Minutes
In Australia, the central bank said in its recently published meeting that an argument for another interest rate cut in its cash rate could be made at the upcoming meeting. The statement argued that slow wage growth and tepid inflation are being closely watched with a view to another rate adjustment. China’s central bank is due to make a rate announcement on Wednesday which could result in a knee-jerk reaction if there is a deviation from analysts’ expectations. China’s economy and growth plays a key role in global growth rates but especially those economies which are reliant on it as a trading partner, like Australia and New Zealand. The AUD/USD is trading at $0.682, up 0.1851% while the NZD/USD is at $0.6408, a gain of 0.1453%.