Investing.com – Australia’s dollar tumbled against its U.S. counterpart on Tuesday, retreating form a 26-month high, after the Reserve Bank of Australia announced it was leaving its benchmark interest rate unchanged.
AUD/USD hit 0.9542 during European morning trade, the pair’s lowest since September 4; the pair subsequently consolidated at 0.9599, plunging 0.85%.
The pair was likely to find support at 0.9462, the low of September 4 and resistance at 0.9732, Monday’s high.
Earlier in the day, the RBA said that it said it was keeping its benchmark interest rate unchanged at 4.5% for the fifth consecutive month. Economists had expected the RBA to raise the rate to 4.75% in October.
Commenting on the decision, central bank Governor Glenn Stevens said, “The global economy grew faster than trend over the year to mid 2010, but will probably ease back to about trend pace over the coming year.”
“In Europe and the United States, growth prospects appear to be modest in the near term, a legacy of the financial crisis and its impact on private and public finances. Financial markets are still characterized by a degree of uncertainty’, he added.
The Aussie was also down against the euro, with EUR/AUD soaring 1.62% to hit 1.4365.
Also Tuesday, official data showed that Australia’s retail sales rose less-than-expected in August, while the countrys trade balance rose broadly in line with expectations.
AUD/USD hit 0.9542 during European morning trade, the pair’s lowest since September 4; the pair subsequently consolidated at 0.9599, plunging 0.85%.
The pair was likely to find support at 0.9462, the low of September 4 and resistance at 0.9732, Monday’s high.
Earlier in the day, the RBA said that it said it was keeping its benchmark interest rate unchanged at 4.5% for the fifth consecutive month. Economists had expected the RBA to raise the rate to 4.75% in October.
Commenting on the decision, central bank Governor Glenn Stevens said, “The global economy grew faster than trend over the year to mid 2010, but will probably ease back to about trend pace over the coming year.”
“In Europe and the United States, growth prospects appear to be modest in the near term, a legacy of the financial crisis and its impact on private and public finances. Financial markets are still characterized by a degree of uncertainty’, he added.
The Aussie was also down against the euro, with EUR/AUD soaring 1.62% to hit 1.4365.
Also Tuesday, official data showed that Australia’s retail sales rose less-than-expected in August, while the countrys trade balance rose broadly in line with expectations.