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Forex - AUD/USD hits 1-week low after RBA holds rate steady

Published 08/02/2011, 02:55 AM
AUD/USD
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AUD/JPY
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Investing.com – The Australian dollar fell to a one-week low against its U.S. counterpart on Tuesday, after the Reserve Bank of Australia kept the benchmark interest rate unchanged, due to “uncertainty” over the global economic outlook.

AUD/USD hit 1.0888 during late Asian trade, the pair’s lowest since July 26; the pair subsequently consolidated at 1.0891, tumbling 0.72%.

The pair was likely to find support at 1.0794, the low of July 25 and resistance at 1.1064, Monday’s high.

The RBA held the overnight cash rate target at 4.75% for a record eighth straight meeting, saying “the board remains concerned about the medium-term outlook for inflation.”

“On balance, the board judged that it was prudent to maintain the current setting of monetary policy, particularly in view of the acute sense of uncertainty in global financial markets,” the bank said.

Elsewhere, official data released earlier showed that the number of residential-building permits issued in June fell more-than-expected while a separate report showed that house prices fell from April through June for the third quarter in the past year.

The Aussie was also lower against the yen, with AUD/JPY shedding 0.59% to hit 84.19.

Later in the day, the U.S. was to publish official data on personal consumption expenditures and personal spending.

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