Forexpros - The Australian dollar weakened against the greenback on Tuesday after the Reserve Bank of Australia left interest rates unchanged at record-low levels but left the door open to further loosening if need be.
In U.S. trading on Tuesday, AUD/USD hit 0.9146, down 0.98%, up from a session low of 0.9131 and off from a high of 0.9250.
The pair was likely to test support at 0.9114, Friday's low, and resistance at 0.9254, Monday's high.
The Reserve Bank of Australia left interest rates unchanged at a record low 2.75% but suggested further rate cuts may come later this year, saying the subdued inflation outlook left scope for more easing.
"The Australian dollar has depreciated by around 10% since early April, although it remains at a high level. It is possible that the exchange rate will depreciate further over time, which would help to foster a rebalancing of growth in the economy," Reserve Bank of Australia Governor Glenn Stevens said in a statement.
Meanwhile in the U.S., the dollar saw demand on better-than-expected factory data.
The Commerce Department reported earlier that U.S. factory orders rose 2.1% in May from April, beating expectations for a 2.0% increase and above an upwardly revised 1.3% rate in April.
The numbers drew applause in markets by rekindling expectations that the Federal Reserve remains on course to tapering its USD85 billion-a-month asset purchasing program later this year.
Investors kept a close eye on Friday, when the U.S. Bureau of Labor Statistics will release its June jobs report, which markets hope will act as a weather vane as to when the Fed may begin to dismantle stimulus programs, which weaken the dollar to spur recovery.
The Australian dollar, meanwhile was down against the euro and up against the yen, with EUR/AUD up 0.51% at 1.4212 and AUD/JPY up 0.04% at 92.09.
On Wednesday, the U.S. is to release the ADP report on nonfarm payrolls, which leads the closely watched government report by two days. The U.S. is also to release the weekly government report on initial jobless claims, one day ahead of schedule, as well as data on the trade balance.
In addition, the Institute for Supply Management is to produce a report on U.S. service sector activity.
Meanwhile, Australia is to produce official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity, as well as a report on the trade balance.
In U.S. trading on Tuesday, AUD/USD hit 0.9146, down 0.98%, up from a session low of 0.9131 and off from a high of 0.9250.
The pair was likely to test support at 0.9114, Friday's low, and resistance at 0.9254, Monday's high.
The Reserve Bank of Australia left interest rates unchanged at a record low 2.75% but suggested further rate cuts may come later this year, saying the subdued inflation outlook left scope for more easing.
"The Australian dollar has depreciated by around 10% since early April, although it remains at a high level. It is possible that the exchange rate will depreciate further over time, which would help to foster a rebalancing of growth in the economy," Reserve Bank of Australia Governor Glenn Stevens said in a statement.
Meanwhile in the U.S., the dollar saw demand on better-than-expected factory data.
The Commerce Department reported earlier that U.S. factory orders rose 2.1% in May from April, beating expectations for a 2.0% increase and above an upwardly revised 1.3% rate in April.
The numbers drew applause in markets by rekindling expectations that the Federal Reserve remains on course to tapering its USD85 billion-a-month asset purchasing program later this year.
Investors kept a close eye on Friday, when the U.S. Bureau of Labor Statistics will release its June jobs report, which markets hope will act as a weather vane as to when the Fed may begin to dismantle stimulus programs, which weaken the dollar to spur recovery.
The Australian dollar, meanwhile was down against the euro and up against the yen, with EUR/AUD up 0.51% at 1.4212 and AUD/JPY up 0.04% at 92.09.
On Wednesday, the U.S. is to release the ADP report on nonfarm payrolls, which leads the closely watched government report by two days. The U.S. is also to release the weekly government report on initial jobless claims, one day ahead of schedule, as well as data on the trade balance.
In addition, the Institute for Supply Management is to produce a report on U.S. service sector activity.
Meanwhile, Australia is to produce official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity, as well as a report on the trade balance.