AUD weakened against other major currencies in the European session on Tuesday as investors continued to digest the minutes from the Reserve Bank of Australia’s (RBA) December 9-10 policy meeting, at which the central bank’s policymakers kept the benchmark rate unchanged at 4.35%.
The minutes indicated that the Australian central bank could cut interest rates if the domestic economy continues evolving in line with or below policymakers’ expectations. In addition, the RBA stressed the need for future data flow to increase the confidence that inflation is returning to the target.