Tuesday in Asia, the Australian dollar showed weakness against its major opponents following the release of the Reserve Bank of Australia's monetary policy meeting minutes for March. The aussie slumped to a 6-day low against the NZ dollar and a 5-day low against the Japanese yen.
The Reserve Bank of Australia's monetary policy board saw more evidence this month that an economic recovery was well underway, and used that as a basis for raising interest rates, according to the minutes of the March 2 RBA meeting released by the central bank today. At the meeting, the board increased the cash rate by 25 basis points to 4%.
Having left rates unchanged in February, the board noted that economic conditions had improved since. The board noted that staff forecasts showed "economic activity would grow at around trend rates over the next couple of years," and that "some recent indicators suggested that growth might already have been running at or close to trend for a few months."
The board also said data indicated that underlying inflation would fall further in the near term, to around 2.5% for the full year ahead.
"Positive developments" were also seen in the financial sector, "including early signs that credit to business was becoming easier after the difficult period last year." The RBA also noted that while housing loan approvals had slowed, house prices had gained "significant momentum" and were 'continuing to rise strongly for all but the bottom segment of the market."
On the equity front, despite a flat close on Wall Street overnight, the Australian stock market is trading higher today with investors indulging in some selective buying in stocks from financial, industrial, information technology and mining sectors.
The benchmark S&P/ASX 200 index, which rose to 4,806.4 after a flat start, is currently trading at 4,797, up 12.9 points or 0.3% over its previous close. The broader All Ordinaries index is up 10.6 points or 0.2% at 4,810.
Among other markets in the Asia-Pacific region, Japan, New Zealand and South Korea are trading weak, while Singapore and Taiwan are up with modest gains.
The Australian dollar dropped to a 5-day low of 82.30 against the Japanese yen around 8:45 pm ET from 82.83 hit late New York Monday. The aussie-yen pair reversed its direction shortly but moved mostly sideways and is presently quoted at 82.54. The pair that closed yesterday's deals at 82.83 is presently quoted at 82.53.
The Bank of Japan is set to open its two-day monetary policy meeting and the central bank is widely expected to keep rates on hold at the record low of 0.10 percent, but speculation has run rampant that the bank will introduce other stimulus measures at a time when other countries are starting to withdraw theirs.
Against the NZ dollar, the aussie slipped to a 6-day low of 1.2973 around 9:00 pm ET and this may be compared to Monday's New York session closing value of 1.3050. On the downside, the aussie-kiwi pair may find target around the 1.2930 level. The pair is presently quoted at 1.2990.
The Australian dollar that closed Monday's North American deals at 0.9327 against the Canadian dollar declined to 0.9304 around 8:30 pm ET. The aussie-loonie pair is presently quoted at 0.9321.
The Australian currency also drifted lower to 1.4996 against the euro and 0.9122 against the US dollar around 7:35 pm ET and this may be compared to Monday's New York session closing values of 1.4959 and 0.9149, respectively. The aussie is presently quoted at 1.498 against the euro and 0.9143 versus the greenback.
Looking ahead, CPI reports from the major euro-zone economies for February and the German ZEW survey results for March are likely to influence the market in the upcoming European session.
Across the Atlantic, the US housing starts, building permits, exports and import price data-all for the month of February are expected in the North American session.
The Federal Reserve Open Market Committee is scheduled to meet today and make an announcement regarding its near-term direction of monetary policy at 2:15 PM ET.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.