Investing.com - The Australian dollar rose to one-week highs against its U.S. counterpart on Tuesday, after the Reserve Bank of Australia left interest rates on hold and signaled the possibility of further rate cuts in the future.
AUD/USD hit 0.7218 during late Asian trade, the pair's highest since October 27; the pair subsequently consolidated at 0.7205, advancing 0.83%.
The pair was likely to find support at 0.7103, Monday's low and resistance at 0.7261, the high of October 27.
In a widely expected move, the RBA left its benchmark interest rate unchanged at 2.0%.
Speaking after the decision, RBA Governor Glenn Stevens that "the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand.”
Meanwhile, the greenback remained under pressure after the Institute for Supply Management said its index of purchasing managers fell to a more than two-year low of 50.1 last month from a reading of 50.2 in September.
Investors were turning their attention to Friday U.S. nonfarm payrolls report for indications on the likelihood of a December rate hike.
The Federal Reserve left rates on hold last week but indicated that it could still raise interest rates for the first time since 2006 at its December meeting.
The Aussie was higher against the euro, with EUR/AUD declining 0.72% to 1.5300.