Investing.com - The Australian dollar edged lower against its U.S. counterpart on Tuesday, as comments by Reserve Bank of Australia Governor Glenn Stevens weighed, while expectations for the Federal Reserve to soon scale back its stimulus program still supported the greenback.
AUD/USD hit 0.9058 during late Asian trade, the pair's lowest since November 29; the pair subsequently consolidated at 0.9094, slipping 0.14%.
The pair was likely to find support at 0.8972, the low of September 3 and resistance at 0.9168, Monday's high.
At the end of its monthly policy meeting, the RBA left its benchmark interest rate unchanged at a record low 2.50%, in line with expectations.
Commenting on the decision, RBA Governor Stevens said the Aussie was "still uncomfortably high" and that a lower currency "is likely to be needed to achieve balanced growth in the economy."
Earlier in the day, official data showed that retail sales in Australia rose 0.5% in October, more than the expected 0.4% rise, after an upwardly revised 0.9% increase the previous month.
Meanwhile, the greenback remained supported after the Institute for Supply Management said Monday that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in November, fuelling optimism over the economic recovery.
The ISM manufacturing purchasing managers’ index rose to 57.3 in November from 56.4 in October. Analysts had expected the index to fall to 55.0.
The Aussie was also lower against the euro, with EUR/AUD rising 0.29% to hit 1.4912.
AUD/USD hit 0.9058 during late Asian trade, the pair's lowest since November 29; the pair subsequently consolidated at 0.9094, slipping 0.14%.
The pair was likely to find support at 0.8972, the low of September 3 and resistance at 0.9168, Monday's high.
At the end of its monthly policy meeting, the RBA left its benchmark interest rate unchanged at a record low 2.50%, in line with expectations.
Commenting on the decision, RBA Governor Stevens said the Aussie was "still uncomfortably high" and that a lower currency "is likely to be needed to achieve balanced growth in the economy."
Earlier in the day, official data showed that retail sales in Australia rose 0.5% in October, more than the expected 0.4% rise, after an upwardly revised 0.9% increase the previous month.
Meanwhile, the greenback remained supported after the Institute for Supply Management said Monday that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in November, fuelling optimism over the economic recovery.
The ISM manufacturing purchasing managers’ index rose to 57.3 in November from 56.4 in October. Analysts had expected the index to fall to 55.0.
The Aussie was also lower against the euro, with EUR/AUD rising 0.29% to hit 1.4912.