Currency markets went nowhere during the Asian session on Tuesday, trading in tight ranges. The Australian dollar was the only G10 currency that moved.
The Aussie got a big boost after the release of Reserve Bank of Australia July policy meeting minutes. The central-bank’s tone was a little less suggestive of near-term easing than markets had expected. Thus, the less the likelihood of a rate-cut soon led to demand for the currency.
AUDUSD rose to a session high of $0.9193, up from a low of $0.9085, gaining over one percent in the session.
The euro traded sideways, with EURUSD little changed from late Monday and hovered around $1.3070.
The single currency has proven to be quite resilient in the last few days and has remained above the key $1.3000 level but the downside risks remain especially due to the contrasting policies of the ECB and the Federal Reserve.
Coming up in the European session, euro zone data will be in focus. The ZEW Institute economic sentiment index, a leading indicator of economic health, will be released for Germany as well as for the wider euro zone. Also the euro zone is to release data on consumer price inflation.
Sterling did little during most of the session after GBPUSD opened at $1.5098 but then got a lift to $1.5131 at the end of the session. Focus will be on U.K. inflation data due later today.
The yen ended flat, with USDJPY seeing negligible movement and finished slightly below the open down at 99.74 yen.
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