$A higher after upbeat RBA minutes

The Australian dollar is a quarter of a US cent higher after the central bank released the minutes of its February board meeting.

At 1200 AEDT on Tuesday, the local unit was trading at 103.25 US cents, up from 102.95 cents on Monday.

The Reserve Bank of Australia (RBA) kept the cash rate at three per cent at its first meeting of the year, after cutting it by a quarter of a percentage point at the previous meeting in December.

The RBA minutes indicated the bank would wait to see how recent interest rate cuts flowed through the economy before deciding if it needed to cut the cash rate further in 2013.

Easy Forex currency dealer Tony Darvall said the minutes were generally positive and spoke about the stabilisation of the Chinese economy.

"They talked about stronger domestic demand across Asia. They're pretty strong comments," he said.

"Also, that the iron ore price has increased, which is going to help.

"They weren't focusing on the rate cuts or the downside to the economy."

Mr Darvall said the next focus for currency markets would be RBA Governor Glenn Steven's testimony before a parliamentary committee on Friday.

"They will grill him on the high value of the Aussie dollar, that's for sure," he said.

"Our central bank is very independent compared to most countries, and the bar for intervention (in currency markets) has been set very high.

"At 110.00 US cents they weren't intervening or even talking about it."

Mr Darvall said he expected the Australian dollar to trade in a range between 103.10 US cents and 103.40 cents on Tuesday afternoon.

Meanwhile, the Australian bond market was weaker.

At 1200 AEDT on Tuesday, the March 10-year bond futures contract was trading at 96.445 (implying a yield of 3.555 per cent), down from 96.465 (3.535 per cent) on Monday.

The March three-year bond futures contract was at 97.080 (2.920 per cent), down from 97.100 (2.900 per cent).

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9328+0.0002+0.02%
    AUDUSD=X
    0.5556+0.0003+0.05%
    AUDGBP=X
    0.6754+0.0002+0.03%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg