Forex - AUD/USD rises as RBA holds interest rates

Published 04/02/2013, 02:53 AM
Updated 04/02/2013, 02:54 AM
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Investing.com - The Australian dollar rose against its U.S. counterpart on Tuesday, after the Reserve Bank of Australia left interest rates unchanged, while disappointing U.S. manufacturing data weighed on the greenback.

AUD/USD hit 1.0479 during late Asian trade, the pair's highest since March 27; the pair subsequently consolidated at 1.0456, rising 0.33%.

The pair was likely to find support at 1.0418, the low of March 27 and resistance at 1.0497, the high of March 26 and a two-month high.

In a widely expected move, the RBA held the benchmark interest rate at a 50-year low of 3%, citing the recent recovery in household spending.

Commenting on the decision, RBA Governor Glenn Stevens said that "there are a number of indications that the substantial easing of monetary policy during late 2011 and 2012 is having an expansionary effect".

Meanwhile, the Institute of Supply Management said on Monday that its U.S. manufacturing purchasing managers’ index declined to 51.3 in March, its lowest level since December, from 54.2% in February.

Analysts had expected the PMI to remain unchanged last month.

The Aussie was also higher against the euro with EUR/AUD shedding 0.35%, to hit 1.2287.

Later in the day, the U.S. was to release a government report on factory orders.


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