Investing.com – The Australian dollar slid to a four-day low against its U.S. counterpart on Tuesday, after the Reserve Bank of Australia left its benchmark interest rate unchanged and said the outlook for growth may be weaker than previously forecast.
AUD/USD hit 1.0665 during late Asian trade, the pair’s lowest since June 29; the pair subsequently consolidated at 1.0680, shedding 0.48%.
The pair was likely to find support at 1.0518, the low of June 29 and resistance at 1.0785, Monday’s high.
The RBA held the cash rate at 4.75% in a widely expected decision, saying that the euro zone’s sovereign debt crisis had “added to uncertainty” about the outlook for the world economy.
In its rate statement, the central bank said growth in 2011 was “unlikely to be as strong as earlier forecast.” In its May rate statement, the bank had forecast that the economy would expand 4.25% this year.
The Australian dollar was also weakened by speculation that China may raise its official cash rate over the weekend. China is Australia’s largest trading partner.
The Aussie was also weaker against the yen, with AUD/JPY slipping 0.14% to hit 86.59.
Later Tuesday, the U.S. was to publish government data on factory orders.
AUD/USD hit 1.0665 during late Asian trade, the pair’s lowest since June 29; the pair subsequently consolidated at 1.0680, shedding 0.48%.
The pair was likely to find support at 1.0518, the low of June 29 and resistance at 1.0785, Monday’s high.
The RBA held the cash rate at 4.75% in a widely expected decision, saying that the euro zone’s sovereign debt crisis had “added to uncertainty” about the outlook for the world economy.
In its rate statement, the central bank said growth in 2011 was “unlikely to be as strong as earlier forecast.” In its May rate statement, the bank had forecast that the economy would expand 4.25% this year.
The Australian dollar was also weakened by speculation that China may raise its official cash rate over the weekend. China is Australia’s largest trading partner.
The Aussie was also weaker against the yen, with AUD/JPY slipping 0.14% to hit 86.59.
Later Tuesday, the U.S. was to publish government data on factory orders.