Investing.com - The Australian dollar dropped against its U.S. counterpart on Tuesday, as comments by the Reserve Bank of Australia weighed and as concerns over ongoing violence in Iraq persisted.
AUD/USD hit 0.9349 during late Asian trade, the pair's lowest since June 10; the pair subsequently consolidated at 0.9357, declining 0.46%.
The pair was likely to find support at 0.9258, the low of June 5 and resistance at 0.9425, the high of June 13.
In the minutes of its June policy meeting, the RBA said that it is hard to gauge how much low interest rates will offset a drop in mining investment and tighter fiscal policy, adding that the currency was providing less assistance to rebalancing growth.
Separately, official data showed that new motor vehicle sales in Australia rose 0.3% last month, after a flat reading in April.
Meanwhile, concerns over the ongoing Sunni insurgency in Iraq continued to weigh on market sentiment, amid fears over the impact of higher oil prices on global economic growth.
The greenback found some support after data on Monday showed that manufacturing activity in New York state expanded more quickly than forecast in June, while a separate report showed that industrial production rose more-than-expected in May.
The Aussie was lower against the euro, with EUR/AUD gaining 0.38% to 1.4493.
Later in the day, the U.S. was to produce data on housing starts, building permits and consumer prices.