Investing.com - The Australian dollar held steady against its U.S. counterpart on Tuesday, after falling to one-week lows as the Reserve Bank of Australia signalled the possibility for further interest rate cuts.
AUD/USD hit 0.8010 during late Asian trade, the session high; the pair subsequently consolidated at 0.7993.
The pair was likely to find support at 0.7882, the low of May 12 and resistance at 0.8055, Monday's high.
In the minutes of its May policy meeting, the RBA said it remained open to further rate cuts, due to the slowdown in China's economy and concerns over the Australian job market.
Earlier in the month, the RBA lowered its benchmark interest rate by 0.25% from 2.25% to a record-low 2.00%.
Meanwhile, the greenback continued to rebound from recent losses as investors turned their attention to Friday’s U.S. inflation data and Wednesday’s minutes of the Federal Reserve's April meeting for fresh indications on the timing of an initial rate hike.
The U.S. dollar had come under broad selling pressure as a string of downbeat economic reports dampened hopes for a second quarter rebound after a sharp slowdown in growth in the first three months of the year.
The Aussie was higher against the euro, with EUR/AUD shedding 0.20% to 1.4129.
Later in the day, the U.S. was to publish data on building permits and housing starts.