Investing.com - The Australian dollar firmed against the greenback on Tuesday after the country's central bank left benchmark interest rates unchanged.
In Asian trading on Tuesday, AUD/USD hit 1.0429, up 0.62%, up from a session low of 1.0366 and off from a high of 1.0435.
The pair was likely to test support at 1.0366, the earlier low, and resistance at 1.0435, the earlier high.
The Reserve Bank of Australia earlier held its benchmark interest rate, the overnight cash-rate target, unchanged at 3.25%, surprising many market observers who were expecting a rate cut to 3.00%.
The news sparked demand for Australian equities and sent the U.S. dollar falling, as investors put aside concerns stemming from U.S. electoral uncertainty and chased higher-yielding assets in Australia.
U.S. voters go to the ballot box later in the day to elect a new president, and President Barack Obama and Republican challenger Mitt Romney are in a tight race.
Until a winner is announced and electoral uncertainty ends, investors largely remained parked in safe-haven dollar positions in most parts of the world.
The Australian dollar, meanwhile was up against the euro and up against the yen, with EUR/AUD down 0.62% at 1.2271 and AUD/JPY up 0.41% at 83.56.
Traders will return their focus to U.S. elections later Tuesday.
In Asian trading on Tuesday, AUD/USD hit 1.0429, up 0.62%, up from a session low of 1.0366 and off from a high of 1.0435.
The pair was likely to test support at 1.0366, the earlier low, and resistance at 1.0435, the earlier high.
The Reserve Bank of Australia earlier held its benchmark interest rate, the overnight cash-rate target, unchanged at 3.25%, surprising many market observers who were expecting a rate cut to 3.00%.
The news sparked demand for Australian equities and sent the U.S. dollar falling, as investors put aside concerns stemming from U.S. electoral uncertainty and chased higher-yielding assets in Australia.
U.S. voters go to the ballot box later in the day to elect a new president, and President Barack Obama and Republican challenger Mitt Romney are in a tight race.
Until a winner is announced and electoral uncertainty ends, investors largely remained parked in safe-haven dollar positions in most parts of the world.
The Australian dollar, meanwhile was up against the euro and up against the yen, with EUR/AUD down 0.62% at 1.2271 and AUD/JPY up 0.41% at 83.56.
Traders will return their focus to U.S. elections later Tuesday.