Investing.com - The Australian dollar was lower against its U.S. counterpart on Tuesday, weighed by comments by the Reserve Bank of Australia, while the greenback strengthened after Monday's disappointing U.S. manufacturing data.
AUD/USD hit 0.9691 during late Asian trade, the session low; the pair subsequently consolidated at 0.9688, retreating 0.79%.
The pair was likely to find support at 0.9598, Monday's low and resistance at 0.9792, Monday's high.
In a widely expected move, the RBA earlier held its benchmark interest rate at a record low of 2.75%.
In a statement, the central bank added that it still has room to cut interest rates further and that the Aussie remains high despite its recent downside trend.
Separately, official data showed that Australia's current account deficit narrowed more-than-expected in the first quarter, improving to AUD8.5 billion from a deficit of AUD14.8 billion in the previous quarter.
Analysts had expected the current account deficit to narrow to AUD9 billion in the last quarter.
The greenback had weakened on Monday, after data showed that activity in the U.S. manufacturing sector contracted for the first time in six months in May.
The Institute for Supply Management said its index of purchasing managers fell to 49.0, the lowest level since June 2009 and below the 50 level that separates contraction from growth.
The weak data dampened expectations that the Federal Reserve will start to unwind its USD85 billion-a-month asset purchase program later this year.
The Aussie was lower against the euro with EUR/AUD climbing 0.68%, to hit 1.3481.
Later in the day, the U.S. was to produce a report on the trade balance.
AUD/USD hit 0.9691 during late Asian trade, the session low; the pair subsequently consolidated at 0.9688, retreating 0.79%.
The pair was likely to find support at 0.9598, Monday's low and resistance at 0.9792, Monday's high.
In a widely expected move, the RBA earlier held its benchmark interest rate at a record low of 2.75%.
In a statement, the central bank added that it still has room to cut interest rates further and that the Aussie remains high despite its recent downside trend.
Separately, official data showed that Australia's current account deficit narrowed more-than-expected in the first quarter, improving to AUD8.5 billion from a deficit of AUD14.8 billion in the previous quarter.
Analysts had expected the current account deficit to narrow to AUD9 billion in the last quarter.
The greenback had weakened on Monday, after data showed that activity in the U.S. manufacturing sector contracted for the first time in six months in May.
The Institute for Supply Management said its index of purchasing managers fell to 49.0, the lowest level since June 2009 and below the 50 level that separates contraction from growth.
The weak data dampened expectations that the Federal Reserve will start to unwind its USD85 billion-a-month asset purchase program later this year.
The Aussie was lower against the euro with EUR/AUD climbing 0.68%, to hit 1.3481.
Later in the day, the U.S. was to produce a report on the trade balance.