Investing.com - The Australian dollar rose against its U.S. counterpart on Tuesday, pulling away from a one-month low after the release of strong Australian retail sales data and as the Reserve Bank of Australia left interest rates unchanged.
AUD/USD hit 0.8735 during late Asian trade, the session high; the pair subsequently consolidated at 0.8721, climbing 0.47%.
The pair was likely to find support at 0.8641, the low of October 3 and resistance at 0.8808, the high of October 23.
Official data showed that retail sales in Australia increased by 1.2% in September, beating expectations for a 0.4% rise, after an uptick of 0.1% the previous month.
A separate report showed that Australia's trade deficit widened to A$2.26 billion in September from A$1.01 billion in August, whose figure was revised from a previously estimated deficit of A$0.79 billion.
Analysts had expected the trade deficit to widen to A$1.95 billion in September.
Meanwhile, the RBA held its benchmark interest rate at a record-low 2.50%, in a widely expected move.
Commenting on the decision, RBA Governor Glenn Stevens said the currency "remains above most estimates of its fundamental value."
The greenback remained supported after the Insitute of Supply Management reported on Monday that its manufacturing purchasing managers' index rose to 59.0 this month from 56.6 in September. Analysts had expected the index to decline to 56.2 in October.
The Aussie was also higher against the euro, with EUR/AUD shedding 0.27% to 1.4340.
Later in the day, the U.S. was to release trade balance data.