Australian dollar under pressure awaiting RBA minutes

The Australian dollar came under pressure last week as more positive economic news out of the US sent the greenback soaring against most major currencies Including the Aussie adding more pressure on the US Federal Reserve to make a move on Interest rates sooner than later.

At Friday’s close the Australian dollar finished at US82.44 cents down from US83.11 cents the previous week.

At 6.18pm(AEDT) In todays trade the currency is trading slightly lower at US82.37 cents.

The more than 40% drop in oil prices this year also means falling petrol prices which is going to put more money in the pockets of American consumers noted analysts from Fibogroup.

This can only add to inflationary worries which in turn may force the Fed to make a move on Rates at some time in the nearest future to curb spending.

The final straw for the Aussie dollar last week came when consumer confidence in America rose to an eight year high as the latest Reuters/Michigan Consumer Sentiment Index was released to the market.

The number came in at 93.8 well above analysts’ expectations of 89.5 which sent the Australian dollar tumbling to finish off another horror week.

Another damper was the Industrial production figures from China which came in at 7.2% against expectations of 7.5% dragging down the price of Iron ore, Australia’s biggest commodity as well as the local currency.

The Australian dollar may come under further pressure as we head towards Tuesday’s RBA minutes meeting as Investors await the monetary policy statement to see if the bank agrees with a growing list of Analysts who are calling for an Interest rate cut to kick start the local economy