The Australian dollar pushed ahead against its top 16 counterpart currencies on Tuesday after minutes from the early July policy meeting of the central bank indicated currency losses are influencing currency drops, Bloomberg reports.
For a second-straight day, both the Aussie and the New Zealand dollar advanced against the world's reserve currency as chairman Ben Bernanke with the U.S. Federal Reserve prepares to deliver congressional testimony later this week.
"People were probably positioned a little short going into the minutes expecting a bit more dovishness," currency economist Peter Dragicevich with Commonwealth Bank of Australia in Sydney told the publication on Tuesday. The early July minutes revealed "even though the fall in the currency is likely to see inflation pick up slightly it's still within the range where they could provide stimulus."
Policy makers with the central bank of Australia said during the policy meeting that urgency is not as strong as anticipated, suggesting reduced demand to slash borrowing costs, according to Reuters.
Policy positions that the RBA presently is assuming are appropriate for this time, Reuters reports the minutes note.
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