The Australian dollar has regained some of its losses following the release of the Reserve Bank of Australia’s August minutes, thanks to stronger gold futures on the back of greenback weakness.

At 0700 AEST on Wednesday, the local unit was trading at 90.70 US cents, up from 90.45 cents on Tuesday.

Gold futures hit a two-month high as losses in the US dollar stoked demand for the metal ahead of the release later this week of the closely-watched minutes from the US Federal Reserve’s latest meeting.

“The Australian dollar recovered just a little bit overnight,” ANZ senior manager FX in Auckland Sam Tuck said.

“Most of the weakness was due to the RBA minutes. “There was a slight reduction in the RBA’s easing bias with comments suggesting the rates cycle was nearing the end.

“That was slightly less of an easing bias than the markets expected but despite that, the Aussie continued on lower.”

AAP