Investing.com - The Australian dollar dropped to three-year lows on Wednesday, following comments by Reserve Bank of Australia Governor Glenn Stevens, as well as disappointing economic data out of China.
AUD/USD hit 0.9066 during late Asian trade, a three-year low; the pair subsequently consolidated at 0.9073, retreating 0.81%.
The pair was likely to find support at 0.9066 and resistance at 0.9190, the session high.
The Aussie weakened after RBA Governor Stevens said the board "deliberated for a very long time" on Tuesday before deciding to keep its key interest rate unchanged at a record low 2.75%, signalling the possibility for rate cuts in the near future.
Also in Australia, official data showed that retail sales rose 0.1% in May, less than the expected 0.3% increase, after a 0.1% fall the previous month.
A separate report showed that Australia's trade surplus expanded unexpectedly in May, rising to AUD0.67 billion from a surplus of AUD0.17 billion the previous month.
Analysts had expected the trade balance to fall into a deficit of AUD0.05 billion in May.
Elsewhere, a government report showed that China’s non- manufacturing purchasing managers' index inched down to 53.9 in June from 54.3 in May.
China is Australia's biggest export partner.
Meanwhile, investors were looking ahead to Friday’s U.S. nonfarm payrolls data, for further clues on when the Federal Reserve may decide to unwind its USD85 billion-a-month stimulus program.
The Aussie was also lower against the euro with EUR/AUD climbing 0.79%, to hit 1.4300.
Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims one day ahead of schedule, and data on the trade balance.
AUD/USD hit 0.9066 during late Asian trade, a three-year low; the pair subsequently consolidated at 0.9073, retreating 0.81%.
The pair was likely to find support at 0.9066 and resistance at 0.9190, the session high.
The Aussie weakened after RBA Governor Stevens said the board "deliberated for a very long time" on Tuesday before deciding to keep its key interest rate unchanged at a record low 2.75%, signalling the possibility for rate cuts in the near future.
Also in Australia, official data showed that retail sales rose 0.1% in May, less than the expected 0.3% increase, after a 0.1% fall the previous month.
A separate report showed that Australia's trade surplus expanded unexpectedly in May, rising to AUD0.67 billion from a surplus of AUD0.17 billion the previous month.
Analysts had expected the trade balance to fall into a deficit of AUD0.05 billion in May.
Elsewhere, a government report showed that China’s non- manufacturing purchasing managers' index inched down to 53.9 in June from 54.3 in May.
China is Australia's biggest export partner.
Meanwhile, investors were looking ahead to Friday’s U.S. nonfarm payrolls data, for further clues on when the Federal Reserve may decide to unwind its USD85 billion-a-month stimulus program.
The Aussie was also lower against the euro with EUR/AUD climbing 0.79%, to hit 1.4300.
Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims one day ahead of schedule, and data on the trade balance.