Australian Dollar Retreats After RBA Left Rate Unchanged

(RTTNews) - The Australian dollar retreated from its recent highs against other major currencies in the Asian session on Tuesday, after the Reserve Bank of Australia chose to interest rates intact, saying it needs more time to assess the state of the economy.

Australia's central bank seeks to assess the impact of the previous tightening and the economic outlook. The board of the Reserve Bank of Australia left the cash rate target unchanged at 4.10 percent.

"Inflation in Australia has passed its peak and the monthly CPI indicator for May showed a further decline," the RBA said in its statement.

Investors awaiting the minutes of the June FOMC meeting due on Wednesday followed by the U.S. monthly jobs data on Friday for clarity on U.S. interest rates.

In the Asian trading today, the Australian dollar fell to a 6-day low of 1.0806 against the NZ dollar, from a recent high of 1.0855. The aussie may test support near the 1.05 region.

Against the U.S. and the Canadian dollars, the aussie dropped to 0.6641 and 0.8802 from recent highs of 0.6687 and 0.8856, respectively. If the aussie extends its downtrend, it is likely to find support around 0.64 against the greenback and 0.86 against the loonie.

Moving away from recent near a 2-week high of 96.70 against the yen and a 1-week high of 1.6305 against the euro, the aussie slipped to 96.07 and 1.6305, respectively. On the downside, 92.00 against the yen and 1.67 against the euro are seen as the next resistance level for the aussie.

Meanwhile, the other Antipodean currency or the New Zealand dollar fell slightly after the announcement of RBA rate decision.

The NZ dollar retreated to 88.83 against the yen from an early more than 8-year high of 89.32. The Kiwi is likely to find support around the 86.00 region.

Against the U.S. dollar and the euro, the kiwi dropped to 0.6141 and 1.7753 from 1-week highs of 0.6182 and 1.7649, respectively. If the kiwi extends its downtrend, it may find support around 0.59 against the greenback and 1.82 against the euro.

Looking ahead, Canada manufacturing PMI for June is due to be released at 9:30 am ET in the New York session.

U.S. stock markets are closed in account of the nation's Independence Day holiday.