The Australian dollar firmed against its major counterparts in the Asian session on Tuesday, erasing its early losses, after the Reserve Bank of Australia kept its key interest rate unchanged after trimming it for two straight months.

The board of the Reserve Bank of Australia, governed by Philip Lowe, maintained the cash rate at a record low 1.00 percent, in line with forecasts.

"The Board will continue to monitor developments in the labour market closely and ease monetary policy further if needed to support sustainable growth in the economy and the achievement of the inflation target over time," the bank said in a statement.

Policymakers said it is reasonable to expect that an extended period of low interest rates will be required in Australia to make progress in reducing unemployment and achieve more assured progress towards the inflation target.

Data from the Australian Bureau of Statistics showed that Australia recorded a merchandise trade surplus of A$8.036 billion in June. That beat expectations for a surplus of A$6.0 billion and was up from the upwardly revised A$6.173 billion surplus in May.

The currency weakened in early Asian trading, as Asian shares followed Wall Street lower after the U.S. Treasury Department designated China a currency manipulator, paving way for possible additional sanctions.

Meanwhile, China halted purchases of U.S. farm goods as a weapon in the ongoing trade war and also indicated it may slap tariffs on U.S. farm goods purchased after August 3.

On Monday, the currency fell as the escalating U.S.-China trade war triggered concerns about global economic slowdown. Further, China's central bank let its yuan to fall below the politically sensitive level of seven to the U.S. dollar to counter President Donald Trump's latest tariff threat.

The aussie lost 1.2 percent against the yen, 0.6 percent against the greenback, 1.5 percent against the euro and 0.5 percent against the kiwi for the day.

The aussie remained near a 4-day high of 72.71 against the yen, up by almost 2 percent from more than a 7-month low of 71.23 hit at 6:00 pm ET. The pair was valued at 71.58 at yesterday's close. Next immediate resistance for the aussie is possibly seen around the 75.5 level.

Data from the Ministry of Communications and Internal Affairs showed that Japan household spending rose 2.7 percent on year in June, coming in at 276,882 yen. That beat expectations for an increase of 1.2 percent following the 4.0 percent gain in May.

The aussie was up by 0.6 percent at 1.6534 against the euro, following near a 10-year low of 1.6626 it touched at 8:00 pm ET. At Monday's close, the pair was quoted at 1.6580. Further uptrend may take the aussie to a resistance around the 1.63 region.

The Australian currency gained 0.6 percent against the greenback, rising to 0.6795 after the RBA decision. The aussie-greenback pair had ended Monday's deals at 0.6756. Continuation of the aussie's uptrend may see it challenging resistance around the 0.70 region.

After depreciating to more than a 7-month low of 1.0265 at 6:45 pm ET, the aussie bounced off 1.2 percent to 1.0390 against the kiwi. The aussie was trading at 1.0345 per kiwi when it finished deals on Monday. The aussie is seen facing resistance around the 1.05 level.

Data from Statistics New Zealand showed that New Zealand unemployment rate came in at a seasonally adjusted 3.9 percent in the second quarter of 2019. That was shy of expectations for 4.3 percent and down from 4.2 percent in the three months prior.

The aussie was 0.5 percent higher at 0.8963 versus the loonie, gaining from over a 9-year low of 0.8915 recorded at 5:45 pm ET. At yesterday's New York session close, the aussie-loonie pair was worth 0.8921. The aussie is likely to find resistance around the 0.93 level.

In today's events, Federal Reserve Bank of Chicago President Charles Evans is scheduled to speak at a media breakfast event hosted by the central bank at 9:30 am ET.

Federal Reserve Bank of St. Louis President James Bullard will give a speech about the economy and monetary policy at the National Economists Club Signature Luncheon in Washington DC at 12:00 pm ET.

Euro vs AUD (FX:EURAUD)
Forex Chart
From Mar 2024 to Apr 2024 Click Here for more Euro vs AUD Charts.
Euro vs AUD (FX:EURAUD)
Forex Chart
From Apr 2023 to Apr 2024 Click Here for more Euro vs AUD Charts.