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Forex - AUD/USD down after RBA rate decision, weak Australian data

Published 08/03/2010, 08:06 AM
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EUR/AUD
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Investing.com - The Australian dollar was down against its U.S. counterpart on Tuesday, after Australia's central bank kept its interest rate unchanged and after worse-than-expected Australian economic data.

AUD/USD hit 0.9072 during European afternoon trade, a daily low; the pair subsequently consolidated at 0.9114, shedding 0.25%.

The pair was likely to find support at 0.8909, the low of July 27 and resistance at 0.9272, the high of April 5.

Earlier in the day, the Reserve Bank of Australia announced that it had left its benchmark interest rate unchanged at 4.5% for the third consecutive month, in line with expectations.

Commenting on the decision, central bank Governor Glenn Stevens said, “The caution evident in financial markets in the past few months has abated of late, helped by the disclosure of information about European banks."

He added, “Nonetheless, the global outlook remains somewhat more uncertain than a few months ago and this is reflected in the volatility of financial prices.”

Also Tuesday, separate data showed that Australian retail sales fell more-than-expected in June, while building approvals declined unexpectedly in May.

The Aussie was also down against the euro, with EUR/AUD gaining 0.61% to hit 1.4517.

Later in the day, the U.S. was to release key data on pending home sales and personal consumption expenditure.

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