The Aussie held gains on Tuesday even after minutes from the central bank repeated scope for easing is possible if needed as investors remain cautious on U.S. rate hikes.
The Reserve Bank of Australia repeated that continued mild inflation provides scope for easing in the Tuesday release of minutes from its April board meeting on policy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.05% at 94.40.
Overnight, the dollar remained broadly lower against the other major currencies in quiet trade on Monday, as markets were jittery after major oil producers failed to reach an agreement on an output freeze and as Friday’s downbeat U.S. data continued to weigh.
A meeting of the world’s major oil producers in Doha, Qatar on Sunday ended without an agreement on curbing production intended to prop up prices.
The talks collapsed after Saudi Arabia demanded that Iran also join the agreement to cap output.
Iran had already declined to take parts in the talks and said it would not participate in an output freeze until its output levels return to where they were before international sanctions were imposed over its nuclear program.
The yen has strengthened broadly since the start of the year as investor uneasiness about negative-interest-rate policies in Japan and Europe also bolstered investor appetite for safe haven assets.
The strong yen is posing a challenge to the Bank of Japan’s attempts to shore up inflation and Japanese officials have indicated that they could intervene to weaken the currency.
The greenback remained under pressure after reports showing that U.S. industrial production fell more than expected in March and consumer sentiment deteriorated slightly this month.
The reports underlined the view that the Federal Reserve is likely to stick to a cautious approach on future interest rates increases.