Investing.com - The Australian dollar fell on Tuesday in Asia following the release of dovish sounding Reserve Bank of Australia meeting minutes.
AUD/USD was at 0.7148 by 12:05 AM ET (04:05 GMT), down 0.3%.
The RBA expects inflation to remain muted for some time, the minutes said and remains open to rates cuts if inflation remains low and the jobless rate ticks higher. The central bank also noted that the slowdown in GDP growth offset the stronger labor market.
Meanwhile, the U.S. Dollar Index was unchanged at 96.570. The dollar came under pressure earlier this week as U.S. President Donald Trump renewed his criticism of the Federal Reserve over the weekend, blaming it for slowing growth and damping stock prices by tightening monetary policy.
“If the Fed had done its job properly, which it has not, the Stock Market would have been up 5,000 to 10,000 additional points, and GDP would have been well over 4% instead of 3%," Trump said.
In other news, comments from Federal Reserve’s officials were in focus today.
Chicago Federal Reserve President Charles Evans said he expected the central bank to remain on pause until the fall of 2020.
“I can see the funds rate being flat and unchanged into the fall of 2020,” he said Monday during a television interview on CNBC. “For me, that’s to help support the inflation outlook and make sure that it’s sustainable at two or a little bit above; that would be fine, too.”
Meanwhile, Eric Rosengren, president of the Boston Federal Reserve, said the U.S. Fed should let inflation run above 2% “in good times.”
"My own preference would be an inflation range," because hitting the current target will only get harder with rates as low as they are, Rosengren said at Davidson College in North Carolina. "Even though we're only missing by a little bit it actually does matter if you miss by a little bit on a regular basis."
The Fed's preferred inflation measure, the core personal consumption expenditures price index, is currently at 1.8%.
The EUR/USD pair slipped 0.1% to 1.1302 as traders await further news on Brexit.
The U.K. had originally been due to leave the EU on March 29, but the deadline has since been extended multiple times.
The USD/CNY pair was up 0.04% to 6.7061.
The USD/JPY pair slipped 0.1% to 111.92. Japan and the U.S. kicked off trade talks in Washington on Monday, with reports suggesting that the two sides hope to resolve “some of the issues” quickly.