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AUD/USD under pressure

The AUD/USD weakened against the other major currencies in the Asian session on Tuesday following the negative cues from Wall Street and as oil prices eased overnight. Investors preferred to stay on the sidelines ahead of central bank policy decisions due for the week.

Crude oil futures turned lower Monday on a private estimate that showed that supplies in Cushing, Oklahoma storage facilities continued to rise. This is the main delivery hub in the US

Overnight, the dollar remained broadly lower against the other major currencies on Monday, after the release of weak U.S. housing sector data and as sentiment on the greenback remained fragile ahead of the Federal Reserve’s policy meeting this week.

Investors also remain cautious ahead of the US Federal Reserve’s two-day policy meeting starting later today.

The Federal Reserve is not expected to lift rates at this meeting, but the markets will be looking for clues on whether a June rate hike is on the table.

The Bank of Japan also meets this week and expectations that it would help banks lend by offering a negative rate on some loans are rising.

In the New York session, US durable goods orders for March, S&P/Case-Shiller US house price index for February, the Conference Board’s US consumer confidence index for April and the Richmond Fed’s regional manufacturing index for April are due. At 8:55 am ET, Bank of Canada Governor Stephen Poloz is expected to speak at the Canada-US Securities Summit in New York.

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