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Forex - AUD/USD rises after RBA holds rates

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Investing.com - The Australian dollar was higher against its U.S. counterpart on Tuesday, after the Reserve Bank of Australia left interest rates unchanged, although concerns over the outlook for growth in the euro zone weighed.

AUD/USD hit 1.0253 during late Asian trade, the pair's highest since February 28; the pair subsequently consolidated at 1.0235, advancing 0.39%.

The pair was likely to find support at 1.0188, the session low and resistance at 1.0290, the high of February 28.

In a widely expected decision, the RBA held its benchmark interest rate at a 50-year low of 3%, saying that the bank's current monetary policy is appropriate.

The announcement came after official data showed that retail sales in Australia rose 0.9% in January, more than the expected 0.4% increase, after a 0.4% decline the previous month.

A separate report showed that Australia's current account deficit narrowed to AUD14.7 billion in the fourth quarter, from a deficit of AUD15 billion in the previous quarter.

Analysts had expected the current account deficit to widen to AUD15.4 billion in the last quarter.

Elsewhere, concerns over the outlook for Italy, the euro zone's third largest economy, fuelled speculation over a possible rate cut by the European Central Bank in the coming months.

The Aussie was higher against the euro with EUR/AUD shedding 0.30%, to hit 1.2739.

Later in the day, the U.S. Institute of Supply Management was to release a report on service sector activity.

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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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