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Forex - AUD/USD down after RBA keeps interest rate unchanged

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Forex Pros - The Australian dollar was down against its U.S. counterpart on Tuesday, after the Reserve Bank of Australia left its benchmark interest rate unchanged as signs of moderating employment growth indicate inflation will stay contained.

AUD/USD hit 1.0672 during late Asian trade, the pair's lowest since Friday; the pair subsequently consolidated at 1.0677, shedding 0.31%.

The pair was likely to find support at 1.0593, Friday's low and resistance at 1.0774, Friday's high and a three-week high.

The RBA held the overnight cash rate at 4.75% in a widely expected decision. Central bank Governor Glenn Stevens said the decision reflects "softened" prices for raw materials and an unemployment rate that's been little changed near 5%.

Consumer prices that were boosted by natural disasters earlier this year aren't expected to accelerate much above the RBA's target range of 2% to 3%, he said.

Interest rates will need to rise "at some point" to contain inflation, the central bank said in a policy statement on May 6. That phrase wasn't in today's statement.

The Aussie was also lower against the yen, with AUD/JPY slipping 0.09% to hit 85.71.

Later in the day, Federal Reserve Chairman Ben Bernanke was to speak. His comments would be closely watched for his views on the U.S. economic recovery.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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