The Australian dollar showed an interesting reaction in the Asian session as the market focused on the outcome of the Australian central bank's policy meeting.
The Reserve Bank of Australia (RBA) as expected has kept interest rates unchanged at 4.35% for the seventh consecutive meeting.
Speaking at a press conference after the announcement of the rate decision, RBA governor Michele Bullock commented on monetary policy.
The latest Australian economic data does not significantly affect policy projections and interest rates need to be maintained at this time.
Board members have discussed policy changes but do not see interest rate cuts in the near future.
The RBA will act in the direction guided by the data published hereafter.
The Australian dollar jumped early in reaction to the interest rate decision, but began to weaken towards the end of the session.
Since last week continued at the beginning of yesterday week, US dollar trading is seen better than the US dollar which has declined.
On the chart of the currency pair AUD/USD also witnessed a continued price increase up to a height of around 0.68700 just now.
However, the price dropped at the opening of the European session this evening which was seen heading towards the 0.68000 zone.
If the US dollar moves strongly again after this, the price drop can be expected to continue to a lower level.
The focus is on the United States (US) consumer confidence survey data in the New York session tonight which will influence the US dollar.
Meanwhile, Aussie dollar trading will be driven by the Australian inflation data that will be published in the Asian session, Wednesday tomorrow.
The forecast figures show a fairly large difference in numbers, expecting a significant drop in Australian inflation in August.
