Investing.com - The Australian dollar was lower against its U.S. counterpart on Tuesday, after the Reserve Bank of Australia said further rate cuts remain possible in the future, while investors eyed the minutes of the Federal Reserve's latest meeting on Wednesday.
AUD/USD hit 0.9045 during late Asian trade, the pair's lowest since August 8; the pair subsequently consolidated at 0.9046, retreating 0.75%.
The pair was likely to find support at 0.8907, the low of August 6 and resistance at 0.9233, Monday's high.
In the minutes of its latest policy meeting, the RBA said the Aussie's direction will be important in setting policy and signaled further interest rate cuts remain a possibility.
On August 6, the RBA lowered its benchmark interest rate to a record low 2.5%.
Meanwhile, investors were looking ahead to the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program.
Expectations that the Fed may begin tapering as soon as next month were boosted after data last week showed that U.S. weekly jobless claims fell to an almost six year low.
The Aussie was lower against the euro with EUR/AUD advancing 0.81%, to hit 1.4748.
AUD/USD hit 0.9045 during late Asian trade, the pair's lowest since August 8; the pair subsequently consolidated at 0.9046, retreating 0.75%.
The pair was likely to find support at 0.8907, the low of August 6 and resistance at 0.9233, Monday's high.
In the minutes of its latest policy meeting, the RBA said the Aussie's direction will be important in setting policy and signaled further interest rate cuts remain a possibility.
On August 6, the RBA lowered its benchmark interest rate to a record low 2.5%.
Meanwhile, investors were looking ahead to the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program.
Expectations that the Fed may begin tapering as soon as next month were boosted after data last week showed that U.S. weekly jobless claims fell to an almost six year low.
The Aussie was lower against the euro with EUR/AUD advancing 0.81%, to hit 1.4748.