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Forex - AUD/USD drops after RBA comments

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Investing.com - The Australian dollar dropped against its U.S. counterpart on Tuesday, after the Reserve Bank of Australia said the Aussie may continue to decline, while growing expectations for the Federal Reserve to soon scale back its stimulus program still supported the greenback.

AUD/USD hit 0.9153 during late Asian trade, the session low; the pair subsequently consolidated at 0.9180, retreating 0.63%.

The pair was likely to find support at 0.9114, the low of June 28 and a more than two-year low and resistance at 0.9254, Monday's high.

In a widely expected move, the RBA left its benchmark interest rate at a record low 2.75%.

Commenting on the decision, RBA Governor Glenn Stevens said the Aussie "remains at a high level" and may "depreciate further over time, which would help to foster a rebalancing of growth."

Meanwhile, investors were looking ahead to Friday's U.S. nonfarm payrolls data, for further clues on when the Federal Reserve may decide to unwind its USD85 billion-a-month stimulus program.

The Aussie was lower against the euro with EUR/AUD climbing 0.70%, to hit 1.4241.

Later in the day, the U.S. was to produce official 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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