Investing.com - The Australian dollar was almost unchanged against its U.S. counterpart on Tuesday, after the Reserve Bank of Australia left interest rates unchanged and the release of positive Australian building approvals data.
AUD/USD hit 0.8969 during late Asian trade, the pair's highest since March 4; the pair subsequently consolidated at 0.8940, inching up 0.05%.
The pair was likely to find support at 0.8777, the low of January 16 and resistance at 0.9026, the high of February 26.
Earlier in the day, the RBA held its benchmark interest rate at a record low 2.5%, in a widely expected move.
Commenting on the decision, RBA Governor Glenn Stevens said that housing prices "have increased significantly" and that the Aussie "remains high by historical standards."
Separately, official data showed that building approvals in Australia rose 6.8% in January, compared to expectations for a 2% increase. Building approvals in December were revised to a 1.3% fall from a previously estimated 2.9% decline.
Data also showed that Australia's current account deficit narrowed to A$10.1 billion in the fourth quarter, from A$12.5 billion in the three months to September, whose figure was revised from a previously estimated A$12.7 billion deficit.
Analysts had expected the current account deficit to narrow to A$10 billion in the last quarter.
Meanwhile, market sentiment improved after a report that President Putin had ordered troops engaged in military exercises close to Ukraine’s borders back to base after the exercises concluded.
The Aussie was fractionally lower against the euro, with EUR/AUD edging up 0.09% to 1.5383.