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Forex - AUD/USD down after RBA leaves 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, saying that a record domestic dollar will contain consumer prices until late this year.

AUD/USD hit 1.0889 during late Asian trade, the pair's lowest since Friday, the pair subsequently consolidated at 1.0886, shedding 0.51%.

The pair was likely to find support at 1.0773, the low of April 27 and resistance at 1.1011, Monday's high and the pair's highest since it was floated in 1983.

"The rising exchange rate will be helping to hold down prices for some consumer products over the coming few quarters," RBA Governor Glenn Stevens said, after the bank held the overnight cash rate at 4.75%.

"Over the longer term, inflation can be expected to increase somewhat if economic conditions evolve broadly as expected."

The RBA has kept rates unchanged since November after massive flooding damaged crops and disrupted coal mining in Queensland state.

The Aussie was also down against the yen, with AUD/JPY shedding 0.65% to hit 88.24.

Later Tuesday, the U.S. was to release government data on factory orders.

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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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