Investing.com - The Australian dollar is trading lower against its U.S. rival on Tuesday in Asia despite comments from Reserve Bank of Australia deputy governor Dr. Philip Lowe that the strong Aussie has been good for the nation's economy.
In Asian trading Tuesday, AUD/USD is lower by 0.12% at 1.0387. The pair was likely to find support at 1.0297, the low of March 14 and resistance at 1.0414, the high of March 15.
In comments made earlier today, Lowe said the strong dollar and Australians' penchant for being thrifty have helped support world's 12th-largest economy. The RBA deputy governor noted that while those two factors have hurt many Australian businesses over the past decade, they been overall positive catalysts for the economy.
Lowe also said RBA's spate of interest rate cuts are starting to have a positive impact on the economy. From late 2011 through the end of last year, the central bank slashed Australia's overnight cash rate to 3%, still one of the highest in the developed world.
Australia has recently delivered some strong economic data points, including a stronger-than-expected February jobs report. Those data releases combined with Lowe's comments could imply another rate reduction from RBA is unlikely in the near-term. As it is, traders see dwindling probability of another RBA cut when the central bank meets early next month.
Still, Australian central bankers and policymakers are searching for ways to spur non-mining investment. In his remarks, Lowe said RBA is waiting to see if lower rates will move investment away from the mining sector, which Australia expects to peak later this year.
Lowe made the remarks at a manufacturing forum.
Elsewhere, EUR/AUD rose 0.18% to 1.2480 while AUD/NZD added 0.10% to 1.2598. AUD/JPY advanced 0.32% to 99.34.
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