Investing.com – The Australian dollar slipped against its U.S. counterpart on Tuesday in Asia after the Reserve Bank of Australia hinted that it would consider a case for a rate cut in June.
The pair was down 0.3% to 0.6888 by 11:30 PM ET (03:30 GMT).
“A lower cash rate would support employment growth and bring forward the time when inflation is consistent with the target,” RBA governor Philip Lowe said in a speech to the Queensland branch of the Economic Society of Australia in Brisbane.
The comments came after the minutes of the RBA’s May meeting, released earlier Tuesday, showed members had discussed the possibility of a rate cut.
“As in the previous meeting, members discussed the scenario where inflation did not move any higher and unemployment trended up, recognising that in those circumstances a decrease in the cash rate would likely be appropriate,” the minutes showed.
The that tracks the greenback against a basket of other major currencies was near two-and-a-half week highs, supported by higher U.S.-yields and its safe-haven status, amid concerns that the U.S.-China trade war could worsen following Washington’s crackdown on Chinese tech giant Huawei.
The pair was up 0.2% to 110.20.
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