AUD/USD opened the Asian session around $0.9958 and has been seen in a range of $0.9945 to $0.9986 so far. Some reported buying from the export sector initially saw prices firm up early on in the Asian session. The rate then dipped to session lows of $0.9945 just before the release of the RBA board minutes for May. There was nothing really published in the minutes to surprise the market. The RBA noted the slowdown in China and that employment growth in the region was subdued. Aussie growth was seen as moderate and the inflation target was to remain at the lower end of the target rate over the next few years. The minutes did, however, see money markets price in an increased probability of a rate cut in June go from 77% to 82%. AUD/USD pulled away from session lows upon the release of the minutes to trade back up to around $0.9958 with some suggestions from traders that the brief move below $0.9950 did nothing more than trip an options barrier. Offers are touted around $1.0000/20 whilst strong demand is seen around the $0.9920/10 region. Rate currently trades $0.9981 up 23 pips.
EasyForexNews Research Team