Off the wire
• Olympic host city to boost police force by 33 pct during Games  • Polls show divided America with Democrats viewed more favorably after convention  • Aussie airlines disrupted by Indonesian volcano  • U.S.-Cuba talks on claims "complext and difficult," official says  • Brazilian officials catch alleged mastermind of Ecclestone kidnapping  • Chinese fencer Lei Sheng ready to defend his crown in Rio  • Malaysia assumes rotating presidency of UN Security Council for August  • Antibodies could combat atherosclerosis as well as tumor  • Djokovic lands in Rio ahead of bid for elusive Olympic gold  • Argentine striker Calleri to join West Ham after Olympics  
You are here: 　 Home

Aussie dollar under pressure ahead of central bank policy meeting

Xinhua, August 2, 2016 Adjust font size:

The Australian dollar was under pressure in the overnight session as lower crude oil rates, a weaker Chinese manufacturing PMI and lower equity markets put a dampener on the global economic outlook.

At the Asian open on Tuesday, the Australian dollar was trading at 75.38 U.S. cents, down from 75.91 U.S. cents at Monday's close.

The mood dampener is also playing on traders as they position ahead of the Reserve Bank of Australia's policy meeting on Tuesday, currently priced at a 66.5 percent probability, Commonwealth Bank of Australian chief currency strategist Richard Grace said.

"The RBA's decision on whether to cut the cash rate is entirely driven by the inflation outlook, it is not because the Australian economy desperately needs additional stimulus to support demand," Grace said.

No matter the outcome, the unit is set for a volatile trade over the next 24 hours.

Should the RBA cut by 25 basis points, the unit is eyeing a potential fall to 74 U.S. cents, but a decision to hold would see the Aussie rally back above 76 U.S. cents, Grace said.

At 0940 local time (AEST), the Australian dollar had eased to 75.26 U.S. cents. Endit