Investing.com - The Australian dollar rose to seven month highs against its U.S. counterpart on Tuesday, after the Reserve Bank of Australia left interest rates on hold and as upbeat manufacturing data from China lent support.
AUD/USD hit 0.9463 during late Asian trade, the pair's highest since November 2013; the pair subsequently consolidated at 0.9457, rising 0.27%.
The pair was likely to find support at 0.9388, Monday's low and resistance at 0.9542.
In a widely expected move, the RBA left its benchmark interest rate unchanged at a record low 2.5%.
Commenting on the decision, RBA Governor Glenn Stevens said Australia's elevated currency "is offering less assistance than it might in achieving balanced growth in the economy."
Separately, data showed that China’s official manufacturing purchasing managers’ index rose to a six-month high of 51.0 in June, in line with expectations and up from 50.8 in May.
Meanwhile, China’s final HSBC Purchasing Managers Index came in at 50.7, weaker than a preliminary reading of 50.8 but higher than May's 49.4 figure.
China is Australia's biggest export partner.
Meanwhile, the greenback remained under pressure after data last week showing a 2.9% economic contraction in the first quarter bolstered expectations that the Federal Reserve will keep rates on hold for an extended period.
The Aussie was higher against the euro, with EUR/AUD shedding 0.34% to 1.4467.
Later in the day, the Institute of Supply Management was to publish a report on U.S. manufacturing activity.