Investing.com - The Australian dollar was higher against its U.S. counterpart on Tuesday, after the Reserve Bank of Australia cut interest rates to a new record low, dampening expectations for further rate cuts in the near future.
AUD/USD hit 0.8990 during late Asian trade, the pair's highest since July 31; the pair subsequently consolidated at 0.8984, advancing 0.59%.
The pair was likely to find support at 0.8872, the low of August 2 and a three-year low and resistance at 0.9072, the high of July 31.
At the end of its monthly policy meeting, the RBA lowered its benchmark interest rate from 2.75% to a record low 2.5%, as expected.
Commenting on the decision, RBA Governor Glenn Stevens said the Aussie dollar "has depreciated by around 15% since early April, although it remains at a high level."
He added that further depreciation "would help to foster a rebalancing of growth in the economy."
Separately, official data showed that Australia's trade surplus expanded less-than-expected in June, rising to AUD0.60 billion from a surplus of AUD0.51 billion the previous month.
Analysts had expected the trade surplus to advance to AUD0.80 billion in June.
Data also showed that job advertizements in Australia fell 1.1% last month, after a 1.6% decline in June.
In addition, official data showed that house price inflation in Australia rose 2.4% in the second quarter, more than the expected 1% rise, after a 0.80% increase in the previous quarter.
Meanwhile, the greenback remained supported after data on Monday showed that activity in the U.S. services sector expanded at the fastest rate in five months in July.
The Aussie was higher against the euro with EUR/AUD retreating 0.67%, to hit 1.4751.
Later in the day, the U.S. was to produce data on the trade balance.
AUD/USD hit 0.8990 during late Asian trade, the pair's highest since July 31; the pair subsequently consolidated at 0.8984, advancing 0.59%.
The pair was likely to find support at 0.8872, the low of August 2 and a three-year low and resistance at 0.9072, the high of July 31.
At the end of its monthly policy meeting, the RBA lowered its benchmark interest rate from 2.75% to a record low 2.5%, as expected.
Commenting on the decision, RBA Governor Glenn Stevens said the Aussie dollar "has depreciated by around 15% since early April, although it remains at a high level."
He added that further depreciation "would help to foster a rebalancing of growth in the economy."
Separately, official data showed that Australia's trade surplus expanded less-than-expected in June, rising to AUD0.60 billion from a surplus of AUD0.51 billion the previous month.
Analysts had expected the trade surplus to advance to AUD0.80 billion in June.
Data also showed that job advertizements in Australia fell 1.1% last month, after a 1.6% decline in June.
In addition, official data showed that house price inflation in Australia rose 2.4% in the second quarter, more than the expected 1% rise, after a 0.80% increase in the previous quarter.
Meanwhile, the greenback remained supported after data on Monday showed that activity in the U.S. services sector expanded at the fastest rate in five months in July.
The Aussie was higher against the euro with EUR/AUD retreating 0.67%, to hit 1.4751.
Later in the day, the U.S. was to produce data on the trade balance.