Forex News: Australian Dollar Falls Following RBA Meeting Minutes, China

Australian Dollar Falls Following RBA Meeting Minutes, China's PMI Data

(RTTNews) - The Australian dollar weakened against other major currencies in the Asian session on Tuesday, following the release of the Reserve Bank of Australia's (RBA) most recent meeting minutes and significant Purchasing Managers' Index (PMI) data from China.

According to the minutes of the RBA's June monetary policy meeting, even while the board believes that the current financial situation is relatively tight, it is nonetheless willing to raise interest rates if needed to maintain price stability.

The central bank emphasized that the prolonged crisis in the Middle East presents serious concerns to both overall growth and inflation, posing a twin danger to the economic outlook.

Data from the National Bureau of Statistics showed that the China's manufacturing activity expanded in June. The manufacturing Purchasing Managers' Index rose to 50.3 in June from 50.0 in May. A score above 50.0 indicates expansion. The reading was also slightly above forecast of 50.1.

The non-manufacturing PMI, which includes sub-indices for services and construction, posted 50.2 in June, up from 50.1 in the previous month. The score was seen at 49.9.

The overall composite output index that comprises manufacturing and non-manufacturing activities, edged up to 50.6 in June from 50.5 in May.

In economic news, Australia's private sector credit rose by 0.7 percent on month in May 2026, matching the growth recorded in both March and April and slightly exceeding market expectations of a 0.6 percent rise. Annually, private sector credit grew by 8.2 percent, the largest increase since November 2022, following an 8.0 percent rise in April.

The Australian dollar also fell due to the growing hawkish views over the Federal Reserve's (Fed) policy outlook. Traders are already pricing in a nearly 60 percent chance that the Fed will raise interest rates by September, according to the CME FedWatch tool.

Investors on this week's important U.S. labor market statistics, which culminate in Thursday's Nonfarm Payrolls data, which will offer new insights into the Fed's interest rate trajectory.

Asian stock markets traded lower amid renewed uncertainty about the geopolitical situation in the Middle East after Iran reportedly said it will not meet the US team in Qatar for the peace talks later in the day to end the four-month war, and insists on control over the Strait of Hormuz, even if Oman opts not to participate.

Tanker traffic through the Strait of Hormuz has also declined after the U.S. and Iran traded new strikes over the weekend.

In the Asian trading today, the Australian dollar fell to nearly a 3-month low of 0.6865 against the U.S. dollar and a 2-1/2-month low of 1.6619 against the euro, from yesterday's closing quotes of 0.6882 and 1.6593, respectively. If the aussie extends its downtrend, it is likely to find support around 0.66 against the greenback and 1.68 against the euro.

Against the Canadian dollar, the New Zealand dollar and the yen, the aussie dropped to 0.9766, 1.2161 and 111.29 from Monday's closing quotes of 0.9780, 1.2180 and 111.44, respectively. The aussie may test support near 0.95 against the loonie, 1.20 against the kiwi and 111.00 against the yen.

Looking ahead, German unemployment rate for June is due to be released at 3:55 am ET.

In the New York session, German CPI data for June, Canada GDP data for April, U.S. Redbook report, U.S. S&P/Case-Shiller home price for April, U.S. Consumer Board's consumer confidence for June and U.S. Dallas Fed services index for June are slated for June are slated for release.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2026 RTTNews.com. All Rights Reserved

Market News provided by RTTNews