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Although demand for higher yielding assets has been driving the Australian Dollar higher versus the U.S. Dollar, traders will be reacting to the release of the Reserve Bank of Australia minutes on Tuesday. Additionally, traders will be listening attentively to the speech by RBA Assistant Governor Guy Debelle. His comments on bank funding will be listened to closely to decipher whether the central bank policymakers are considering a rate change due to rising borrowing costs for lenders.
The AUD/USD has enjoyed a strong rally since the European Central Bank and Federal Reserve both announced stimulus measures earlier in the month. Technically overbought conditions and the release of the RBA minutes could put additional pressure on the currency pair on Tuesday. Furthermore, if RBA Assistant Governor Debelle’s comments don’t conger up talk of an interest rate hike, sellers could pressure the currency.