Australian Dollar Falls As RBA Keeps Key Rate Unchanged

The Australian dollar weakened against other major currencies in the Asian session on Tuesday, after the Reserve Bank of Australia left its benchmark interest rates unchanged, as widely expected.

The policy board of the RBA, led by Governor Michele Bullock, decided to maintain the cash rate target at 4.35 percent. The board also retained the interest rate paid on Exchange Settlement balances at 4.25 percent.

"The Board expects that it will be some time yet before inflation is sustainably in the target range and will remain vigilant to upside risks," the bank said.

In the Asian trading now, the Australian dollar fell to 4-day low of 0.6597 against the U.S. dollar, 1.6315 against the euro and 0.9026 against the Canadian dollar, from an early 4-day high of 0.6646, a 4-month high of 1.6217 and nearly a 1-year high of 0.9077, respectively. If the aussie extends its downtrend, it is likely to find support around 0.64 against the greenback, 1.66 against the euro, and 0.87 against the loonie.

Against the NZ dollar, the aussie slid to a 6-day low of 1.0983 from an early 5-day high of 1.1031. The aussie may test support near the 1.08 region.

The aussie edged down to 101.95 against the yen, from an early 6-day high of 102.47. On the downside, 99.00 is seen as the next support level for the aussie.

Looking ahead, Germany and U.K. construction PMI for April and euro area retail sales figures for March are due to be released in the European session.

In the New York session, U.S. Redbook report, Canada Ivey's PMI for April and U.S. consumer credit for March are slated for release.